US consumer watchdog proposes rules for Big Tech payments, digital wallets

FILE PHOTO: A smartphone with the PayPal logo is placed on a laptop in this illustration taken on July 14, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

WASHINGTON (Reuters) -The top U.S. consumer financial watchdog on Tuesday proposed to regulate tech giants' digital payments and smartphone wallet services, saying they rival traditional payment methods in scale and scope but lack consumer safeguards.

The Consumer Financial Protection Bureau's (CFPB) proposal would subject companies like Alphabet, Apple, PayPal and Block's CashApp to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct and compliance with laws barring unfair and deceptive practices.