By Bob Katzen

Gov. Healey signed into law legislation that supporters say would put consumer protections in place for consumers who use payment apps like Venmo, PayPal and CashApp, while also leveling the regulatory playing field for businesses in the banking and finance industry.

Provisions include mandating updated regulations for domestic money transmission services, including licensing and compliance requirements; prohibiting an individual from engaging in domestic money transmission without a license; requiring licensees engaged in this business to submit regular reports on their financial condition, including quarterly and annual reports; requiring all licensees to refund to a sender all money received for transmission within ten days of receipt of the sender’s written request for a refund unless certain circumstances apply; and allowing the commissioner of Banks to suspend or revoke licenses for non-compliance, fraud or unsafe practices, and to impose civil penalties for violations.

“With this new law, consumers in Massachusetts will now have protection when transferring money to friends and businesses through payment apps,” said Gov. Healey. “The use of apps like Venmo and PayPal has skyrocketed over the years, with billions of dollars exchanging hands, so the importance of this legislation cannot be understated.”

“We are so excited to see the domestic money transmission bill become law because it will positively impact both consumers and businesses,” said Secretary of Economic Development Yvonne Hao. “In addition to offering protection for those using payment apps here in Massachusetts, the bill also establishes regulatory consistencies for any business offering the same services as banking institutions.”

“With the increasing use of mobile payment applications like Venmo now established as part of the financial landscape, it’s time for regulatory oversight to ensure consumers will have the same protections that apply to traditional sectors of the financial industry,” said Sen. Mike Rodrigues (D-Westport), chair of the Senate Committee on Ways and Means.