CFPB’s Prepaid Rules Add Risk for Google, PayPal
By Gregory Roberts
The Consumer Financial Protection Bureau’s prepaid card rules will require mobile wallet businesses to reimburse customers who are victims of fraud—and set aside the money to do so. That requirement is unlikely to have much of an impact on banks that issue prepaid cards or the largest mobile wallet providers such as PayPal and Google, which already voluntarily provide many of the proposed protections. But it could prove more difficult for newer entrants. “How many of them could afford it and make good remains to be seen,” Karen Shaw Petrou, managing partner of Federal Financial Analytics told Bloomberg BNA.