Legal and Regulatory Developments

SPOTLIGHT: CFPB Seeks Extension to Respond to Nonbank Oversight Lawsuit
Payments Dive – March 24, 2025

The Consumer Financial Protection Bureau asked a federal court in Washington for 60 more days to respond to a lawsuit against the agency over its efforts to oversee technology companies that offer digital payments tools.

The federal agency finalized a new rule aimed at those nonbank companies last November, allowing it to police those that process more than 50 million consumer transactions annually, with potentially stiff new penalties.

Lawyers for the CFPB argued the agency needs more time to assess the lawsuit largely because of the change in leadership that resulted after the Trump administration appointed Secretary of the Treasury Scott Bessent as acting director of the agency in January, and the following month designated the director of the Office of Management and Budget, Russell Vought, to that role. . . .

Republicans Air CFPB Grievances, Jockey for Changes at Agency
Banking Dive – March 26, 2025

During a Wednesday hearing, Republican lawmakers blasted what they dubbed past overreach by the Consumer Financial Protection Bureau and pushed for changes at the agency, including turning the bureau into a five-person commission.

“Nowhere has overregulation and overreach been more evident” than at the CFPB, which “became the most unchecked and unaccountable agency in the entire federal government under the previous administration,” Rep. Andy Barr, R-KY, said Wednesday.

A number of proposed bills sponsored by GOP lawmakers and tied to the hearing took aim at the CFPB’s leadership and funding structures. . . .

Industry Developments

SPOTLIGHT: Retailers Push Payment Modernization
Payments Dive – March 21, 2025

Over half of retailers completed a major payments modernization program within the past year, a report from consulting firm KPMG published earlier this year said. For most retailers, the work is not over: 4 in 5 will once again update their payments infrastructure or plan to do so.

Almost 3 in 5 retailers in North America report changing customer expectations as the top factor triggering payment modernizations. The findings are based on a survey by KPMG International of 810 financial institutions and 690 retailers.

A seamless payment experience is critical to customer satisfaction, according to a statement from Duleep Rodrigo, national sector leader of consumer and retail at KPMG U.S. The right delivery can improve operational efficiency and help provide insights into customer behavior, Rodrigo said. . . .

J.P. Morgan Payments Expands Its Reach via Deals With Walmart and Affirm
Digital Transactions News – March 25, 2025

The big payments provider J.P. Morgan Payments expanded its reach into different sectors this week through deals with leading retailer Walmart Inc.’s Walmart Marketplace and buy now, pay later specialist Affirm Inc.

At the Shoptalk conference in Las Vegas, the payments unit of J.P. Morgan Chase & Co., the biggest U.S. banking company, on Tuesday unveiled its so-called embedded finance solution for sellers on the Walmart Marketplace e-commerce platform. The service enables Walmart Marketplace to sign new business users, implement payment accounts, receive payouts, and manage cash flows and transfer funds. The system works with clients’ existing technology platforms, according to J.P. Morgan. . . .

Read Payments News Update – March 28, 2025 at constantinecannon.com