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NewsBriefs

payments at any Visa-accepting location. Concurrently, tion. Effective by year’s end, the rule applies to companies
Visa is introducing VFC in the UAE with Liv Bank, sup- processing over 50 million annual transactions in U.S. dol-
porting multi-currency accounts for seamless cross-bor- lars. This threshold, revised from the initially proposed 5
der transactions. million transactions, excludes digital currencies.

First launched in Japan with SMCC’s Olive Card, VFC CFPB Director Rohit Chopra emphasized the importance
has already attracted 3 million users, 70 percent of whom of oversight in a sector handling over 13 billion consumer
switch between debit, credit, prepaid and extended credit transactions annually. Digital payment apps, now rival
options. traditional payment methods in usage, and process over a
trillion dollars yearly.
Jack Forestell, Visa’s chief product and strategy officer,
emphasized that VFC adapts to diverse consumer needs. The rule empowers the CFPB to proactively examine big
Industry expert Richard Crone views VFC as transforma- tech firms for compliance with consumer protection laws,
tive, potentially reducing reliance on interchange fees, a addressing risks such as data privacy, fraud, errors and
major friction point for merchants. Visa’s long-term vision “debanking,” where consumers lose access to apps or
positions VFC as a platform akin to iOS or Android, en- funds without notice.
abling retailers and payment networks to build apps while
leveraging Visa’s infrastructure. The rule drew praise from banking groups as a step to-
ward ensuring accountability. However, the Financial
Technology Association, representing firms such as Block
CFPB finalizes big tech payments rule and Stripe, argued that most consumers report positive
The Consumer Financial Protection Bureau finalized a experiences with payment apps under existing regula-
rule bringing large tech companies offering digital pay- tions.
ment apps under its oversight, aligning them with banks
and financial institutions already subject to CFPB regula-

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