Will Trump Disrupt The Payments Industry?

Will Trump distrups the payments industry

As we enter the Trump Presidency, there are a number of concerns that need to be addressed for anyone involved in the payment industry – especially if you are involved in the global market or just launched your startup.

While the payment industry is constantly evolving, there are simply too many unknowns on how the new administration is going to treat the industry. So, for the time being, here are some of the key issues that we should be prepared to focus on.

Repealing the CFPB

“Any time the presidency changes parties, you have to expect some significant realignment in regulatory and enforcement policies, and priorities. Due to the divisiveness of this election, I think we can expect a lot of gridlock,” says Judith Rinearson, Partner, K&L Gates LLP.

“On the other hand, with the Senate, the House and the Presidency under one party, there’s also a reasonable chance some major changes in existing law could be implemented. From a payments perspective, I’d keep an eye on Dodd-Frank and the CFPB, both of which will likely come under fire. Overall, the banking and financial services industry might benefit from a reduction in overall regulatory and enforcement burdens.”

It’s no secret that Trump isn’t the biggest Elizabeth Warren fan, who was the founder of the CFPB. Because of this, many political observers believe that Trump would be open to dismantle or change the agency.

“Trump may repeal the CFPB, given his disdain for the Dodd-Frank Wall Street Reform and Consumer Protection Act that created it. If this occurs, the CFPB’s new prepaid card rules will be repealed along with the agency, and another entity will be created to replace it,” says Lori Breitzke, Founder, E&S Consulting.

“​If Trump cannot repeal the CFPB, he will instruct the agency to ignore, rather than enforce, the existing rule governing prepaid cards. Trump also will lower taxes on small businesses, fostering growth and the need for more merchant accounts and services.”

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