The news: The Consumer Financial Protection Bureau (CFPB) is reportedly planning to push US banks to better compensate customers who’ve fallen victim to scams involving Zelle and other peer-to-peer (P2P) payment providers, according to unnamed sources who spoke to the Wall Street Journal.
The backdrop: The popularity of P2P payments has surged in recent years as the pandemic forced more consumers to embrace digital payments.
What now? The proposed guidance is in line with the CFPB and Director Rohit Chopra’s more hands-on approach to regulation.
The big takeaway: Stronger P2P payments oversight could be coming in the US.
This could address the growing problem of fraud, which stands to impede P2P payments growth by deterring customers who might be wary of getting scammed. New regulation may put added strain on banks, but it could also help the industry in the long run by improving consumer trust in P2P services and increasing adoption.