Non-bank payment companies cannot get emergency cash from the US central bank

The US central bank proposes to block non-bank payment companies from getting emergency loans. This means these companies will not have the same financial safety net as traditional banks.

Non-bank financial companies have pushed for more access to the core banking system for years. This proposal draws a clear line: the US central bank's emergency lending is for banks only. This forces non-bank payment providers to manage their own liquidity without a government backstop.