WASHINGTON, D.C. – The Financial Technology Association (FTA)’s President and CEO Penny Lee issued the following statement on the Consumer Financial Protection Bureau (CFPB)’s final rule to define a market for general-use digital consumer payment applications:
“It’s not clear what problem this rule is solving. Payment companies are well-regulated at the state and federal levels, and consumers are having positive experiences with them. In fact, fintech apps rank among the most popular financial brands. According to the CFPB’s annual complaints database, out of 1.3 million complaints last year, only 1% were regarding money transfer and payment services—a category that experienced one of the lowest complaints growth year-over-year.
“The final rule is deeply flawed, failing to define a market or identify specific risks to consumers and conflating diverse uses and products into a one-size-fits-all approach. It will lead to less competition, fewer services, and higher prices. Instead of layering regulation simply for the sake of regulation, we should follow the lead of other major economies and work to integrate leading payment companies into the national payment infrastructure. We urge the Bureau to withdraw this rule.”
FTA previously submitted a comment letter urging the CFPB to pause and reconsider its proposed rule, calling it overly broad and arguing that the Bureau has failed to appropriately define the market or identify specific risks to consumers that existing regulation does not already mitigate. To learn more about FTA’s vision for the future of finance, including payments modernization, read our policy agenda here.
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The Financial Technology Association (FTA) represents industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.