The (CFPB) on Friday said it has ordered federal supervision of Google Payment Corp. after determining that it meets the legal requirements for such oversight. The CFPB monitors banks, credit unions and other financial institutions, and recently finalized a rule to supervise digital payment apps. In the , which focuses on the Google Pay app and its peer-to-peer (P2P) payment service (discontinued in the US earlier this year), the CFPB said it has “reasonable cause to determine that Google has engaged in conduct that poses risks to consumers.” Google filed a lawsuit shortly after the announcement to challenge the decision, reports.
The risks identified by the CFPB are tied to Google’s handling of erroneous transactions and fraud prevention. Based on customer complaints, the order said it appears that Google didn’t adequately investigate erroneous transfers, or adequately…
