The U.S. Consumer Financial Protection Bureau (CFPB) has officially terminated its supervision of Alphabet’s Google Payment Corp., marking a significant policy shift. This decision effectively reverses a key initiative from the Biden administration aimed at regulating nonbank financial platforms.

The move comes in the wake of Google's lawsuit against a CFPB order issued in December 2024. That order had raised concerns about potential consumer risks, prompting the bureau to mandate supervision of Alphabet’s payment subsidiary. Google contended that challenging the decision in court was necessary, given what it deemed as an overreach by the regulator. With the CFPB's withdrawal of supervision, Google has agreed to drop its ongoing lawsuit.

The CFPB's order last year was based on concerns that Google Payment posed risks to consumers. These concerns stemmed from issues such as data handling practices, a lack of transparency, and the potential for fraud. However, in its lawsuit filed shortly after the CFPB's December announcement, Google Payment countered that the regulator relied on a minimal number of unsubstantiated complaints. These complaints, Google argued, pertained to a product that the company had already discontinued in the U.S. by June 2024, well before the CFPB issued its designation. The company emphasized that the discontinuation was driven by legitimate business considerations.

The newly appointed CFPB director, a Trump administration appointee, stated that overseeing Google Payment would represent an unjustified use of the bureau’s resources and authority. During the Biden administration, the CFPB had significantly increased its focus on monitoring financial services provided by Silicon Valley tech firms, rather than solely concentrating on traditional banks.

In a related development, in May 2025, the CFPB also abandoned legal enforcement actions related to a Buy Now, Pay Later (BNPL) rule. The bureau declared that BNPL providers, similar to credit card issuers, would now be subject to the Truth in Lending Act. This BNPL rule, introduced during the Biden presidency, was designed to enhance transparency in lending and safeguard consumers from unfair practices in various forms of credit, including mortgage lending and personal or familial loans. Under the previous rule, fintech companies were required to adhere to stringent consumer protection measures, such as standardized disclosures, formal refund processes, and thorough dispute investigations.

The CFPB now intends to concentrate its enforcement efforts on addressing persistent threats to consumers, with a particular focus on servicemen and veterans. These strategic shifts are part of the bureau’s broader aim to better serve U.S. taxpayers, military personnel, and small and medium-sized enterprises (SMEs).