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Chopra said in a statement that the inquiry is "one of many The firms also use the data they hold to engage in price
efforts within the Federal Reserve System to plan for the discrimination, or they could sell it to third parties without
future of real-time payments and to ensure a fair and the consent of customers, Chopra noted.
competitive payments system in our country."
The American Bankers Association and the Consumer
He suggested the information gathered, along with an Bankers Association are among several organizations to
upcoming request for public comments, will help shape issue public statements praising the CFPB's orders. "These
regulations under Section 1033 of the Dodd-Frank Act, big techs are not subject to prudent standards for capital,
which governs financial data access rights for fintech liquidity, and resolution planning, which could introduce
and bank customers. In July 2021, President Biden signed risks that consumers do not fully understand, including
an Executive Order urging the CFPB to commence rule- the loss of stored value, payment interruptions, and
making under Section 1033. limited protection from fraud compared to the protections
available from regulated banks," the two groups warned.
"Faster, friction-less, and cheaper payment systems offer
significant potential benefits to consumers, workers, Many tech companies became big tech companies after
their families, and small businesses," Chopra said. "But finding ways to offer payments services without the same
payments businesses are network businesses and can gain regulatory constraints that govern financial institutions
tremendous scale and market power, potentially posing and their partners in the payments space. If Apple, PayPal,
new risks and undermining fair competition." Square and other big tech firms want to compete on the
consumer payments playing field, it is only logical to
Chopra added that little is known publicly about how expect them to abide by the same rules and requirements
big tech firms will exploit their payments platforms. that financial institutions and their partners are held to.
For example, will they engage in "invasive financial Patti Murphy is senior editor at The Green Sheet and self-described
surveillance and combine the data they collect on
consumers with their geolocation and browsing data?" payments maven of the fourth estate. Follow her on Twitter @GS_
PayMaven.