Did you know Digital Wallets And Payment Apps From Big Tech Could Face Scrutiny After Top US Watchdog Calls For Greater Surveillance
Digital wallets and payment applications from leading tech giants such
as Apple and Google have come under greater surveillance after a leading
American watchdog generated concerns and called for greater regulation.
Now, Big Tech has rolled out warnings about how this behavior
could stifle innovation and at the same time ensure competition is kept
at a bare minimum, preventing leading players from entering the market, a
lobby group mentioned this week.
The long series of warnings rolled out from the CCIA that entails the
likes of Meta’s Facebook, Amazon, X, and others gave out a reply to the
proposal that we saw rolled out last year in November by the CFPB.
This
was in regards to a claim that smartphone payments made in this regard
as well as wallet services ended up serving as rivals for the likes of
classic payment modes but at the same time, they did not have the right
kind of consumer safeguard in place.
Meanwhile, proposals
generated by the CFPB are not yet confirmed and they could subject big
companies in the world of tech to more regulation and general
supervision that we see being rolled out for banks. Meanwhile, the
agency examiners have spoken about how they are overseeing the general
matter including law compliance regarding unfair practices and also the
kind of privacy protections while also putting the behavior of
executives under scrutiny.
Meanwhile, officials are hoping for the new proposal to cover a whopping
17 different firms that are responsible for a staggering 13 billion
payments taking place each year.
Meanwhile, a few reps from the
banking industry have actually generated positive responses on this
front including how they feel firms providing services similar to banks
need to be regularly checked and must receive direct supervision like
the latter.
But other leading experts including the head of the
CCIA added how such proposals are giving rise to greater forms of harm
than any type of good taking center stage. Meanwhile, they feel that it
might overly burden the major kinds of digital regulation that might
hinder leading startups who are trying to make it big in the industry
via innovation.
Other concerns had to do with how such proposals
from the CFPB failed to highlight major risks linked to clients and
also improperly addressed digital providers who were not linked to the
banking industry. This included banks serving as direct competitors in
the industry.
Even in those situations where there are cases in
which bank and non-bank institutions carry out competition, the reality
for such markets provides how there are several instances where the
synergy can assist clients in giving complementary services, as
confirmed further in the letter released.
Meanwhile, another
letter also came to light on this front by the FTZ where members such as
PayPal and Block Inc. put out similar worries on the matter. Both
companies are giants in the world of finance and payments and rule the
industry as they own top services like Venmo and Cash App.
