CFPB Places Google’s Payment Arm Under Federal Supervision

The US Consumer Financial Protection Bureau (CFPB) has placed Google Payment Corp., Google’s payment arm, under federal supervision, prompting a legal challenge from the company.

Nearly 300 complaints, including fraud and unauthorised transactions, were noted. The agency claimed these issues warranted supervision even for discontinued products. Google Payment filed a lawsuit, challenging monitoring for dormant services and contesting the regulator’s reliance on few complaints. During President Biden’s administration, the regulator’s decision represents continued examination of Silicon Valley’s financial services.

Republicans criticised the CFPB’s latest expansion of its rules to include Internet companies that provide digital wallets and payment services. The CFPB declined to comment on the case, while Google maintains that its now-defunct service cannot be dangerous.