Big Tech rebuffs US consumer watchdog plans to supervise digital wallets

A U.S. watchdog's plan to supervise companies like Apple and Alphabet's Google that provide digital wallets and payment apps risks stifling innovation and keeping some players out of the market, their lobby group said on Monday. Officials expect the proposal, as currently written, would cover 17 companies responsible for 13 billion payments annually. Some bank industry representatives have reacted warmly to the proposal, saying companies that provide bank-like services should be regulated and directly supervised like banks. "Even if there are some instances where banks and nonbank entities compete, the reality of the market shows that there are more instances where their synergies help consumers, providing complementary services," the letter said. It said existing regulations were sufficient and called on the CFPB to suspend the rulemaking process.