The Consumer Financial Protection Bureau (CFPB) has ceased its supervision of Google Payment Corp, reversing a decision made during the Biden administration to monitor the nonbank financial platform. Acting CFPB Director Russell Vought, appointed by former President Donald Trump, stated that continuing to monitor Google's payments arm would be "an unwarranted use of the Bureau's powers and resources".

The CFPB had announced in December 2024 that it would begin supervising Google Payment, citing potential risks to consumers. Google immediately challenged the decision in court, arguing the action was unjustified and based on outdated complaints regarding a discontinued product. Google has now confirmed that it will drop its lawsuit following the CFPB's withdrawal.

Google had retired its U.S.-based peer-to-peer (P2P) Google Pay service in June 2024 for business reasons, months before the CFPB's designation. The company maintained that the product in question was neither risky nor currently available. Google’s spokesperson, José Castañeda, said that it didn't make sense for the CFPB to supervise a product that never posed any risks and is no longer available in the U.S. and that they appreciate their common-sense decision to drop this issue.

Under the Biden administration, the CFPB had intensified scrutiny of fintech platforms, arguing that their growing role in consumer finance warranted closer oversight. This reversal could signal a shift in regulatory priorities under new leadership. The agency has since shifted its focus towards licensed banking institutions, leading to the termination of several regulatory policies and lawsuits targeting non-depository financial companies.

The CFPB's initial press release stated that it is responsible for supervising a wide range of financial firms, including nonbank entities, to ensure they are complying with federal consumer financial protection laws. It also stated that it must issue a notice to an entity not currently subject to a supervisory examination, and that the entity can either consent to supervision or contest the notice.

Google argued that the regulator targeted a discontinued product that posed no risk, welcoming the decision as “common-sense”. In the lawsuit filed after the CFPB's December announcement, Google Payment had said the regulator had relied on a small number of unsubstantiated complaints concerning a product it no longer offered.