Surge in Plant-Based Alternatives Innovative APAC Innovations and Consumer Interest Set to Hit Shelves in 2025
CFPB Decides to Supervise the Non-Bank Companies in the Digital Payments Sector
By Aarti Dhapte , 14 December, 2023
Digital payments make transactions more accessible with various payment applications for consumers. In November 2023, the Consumer Financial Protection Bureau (CFPB) announced governing the non-bank organizations that provide services like digital payment apps, digital wallets, and others.
Companies from the non-bank background are growing in popularity in the digital payment field, such as Google, PayPal, and Apple, among other payment apps. The main concern raised by the organization is that many non-bank payment apps are not subjected to CFPB's supervision tests. Therefore, CFPB wants to enroll all non-bank companies in the digital payment field to follow the rules and regulations of the banks and other financial organizations. CFPB expects this specifically from companies with more than 5 million transactions annually. Credit unions, large banks, and other financial organizations adhere to the guidelines and rules laid down by the CFPB for governing these institutions.
China leads the world in digital payments in 2023 in various areas of the economy, including online shopping, payment at restaurants, and others. A recent survey releasing data in November 2023 shows that Alipay and WeChat Pay are the foremost non-bank companies involved in digital payment and transactions, with 92 and 85 percent, respectively.
Digital payment applications provide convenience in all transactions done by the users. The retail sector sees more payment transactions through non-bank digital payment apps as it overcomes the rate of traditional payment methods via debit and credit cards. The cashless economy trend is growing faster with these digital payment apps as the merchants also allow payments made with online transactions, which helps lessen merchants' use of cash. Digital transactions help consumers with small or middle income primarily. However, CFPB found that tech companies providing digital transactions in the consumer finance markets have reduced the difference between banking and payments through commercial ways. According to CFPB, this difference can put consumers at stake. Therefore, the CFPB will decide on the mandatory supervision of non-bank organizations, like big tech companies, in 2023.
Volume of Transactions
Latest News
Surge in Plant-Based Alternatives Innovative APAC Innovations and Consumer Interest Set to Hit Shelves in 2025
The Plant-Based Surge: New Meat Alternatives Hitting APAC Shelves Market 2025 is benefitting from an innovation cycle, a change in diet preferences, and sustainability needs. There is an emerging focus from start-ups, universities, and global food…
Recycled Polymers Surge in Global Packaging Demand in 2025
The global packaging industry is projected to have a sharp increase in the consumption of recycled polymers in relation to sustainability goals by 2025. This change is likely caused by regulations, business commitments to sustainability, and advances…
Flexible Packaging Market 2025 Sees Strong Growth Driven by Food Waste Reduction Initiatives
The Flexible Packaging Market’s role in reducing food waste in 2025 is becoming increasingly pivotal as governments, food producers, and packaging companies align around sustainability targets. With global food waste exceeding 1.3 billion tons…
Green Chemistry Update Startups Scale Bio-Based Resin Production in the CnM Market 2025
In 2025, the CnM (Composites and Materials) Market is witnessing a pivotal shift as green chemistry startups accelerate the production of bio-based resins, driven by regulatory pressures and sustainability commitments across industries. The momentum…
Solar Prices Fall by 12% in the first quarter of 2025 Effects on India's Renewable Energy Sector
In the first quarter of 2025, India experienced a remarkable decline of 12 percent in the cost of solar photovoltaic (PV) systems for the first time in history. This is a turning point for the country's renewable energy sector. The improvements in…
Aarti Dhapte
Team Lead - Research
Latest News
Recycled Polymers Surge in Global Packaging Demand in 2025
Flexible Packaging Market 2025 Sees Strong Growth Driven by Food Waste Reduction Initiatives
Green Chemistry Update Startups Scale Bio-Based Resin Production in the CnM Market 2025
Solar Prices Fall by 12% in the first quarter of 2025 Effects on India's Renewable Energy Sector
