(a)(1) Market definition. Providing a general-use digital consumer payment application means providing a covered payment functionality through a digital payment application for consumers' general use in making consumer payment transaction(s) as defined in this subpart.

(2) Market-related definitions. As used in this section:

(i) Consumer payment transaction(s) means, except for transactions excluded under paragraphs (a)(2)(i)(A) through (D) of this section, the transfer of funds by or on behalf of a consumer who resides in a State to another person primarily for personal, family, or household purposes. The term applies to transfers of consumer funds and transfers made by extending consumer credit, except for the following transactions:

(A) An international money transfer as defined in § 1090.107(a);

(B) A transfer of funds by a consumer:

(1) That is linked to the consumer's receipt of a different form of funds, such as a transaction for foreign exchange as defined in 12 U.S.C. 5481(16); or

(2) That is excluded from the definition of “electronic fund transfer” under § 1005.3(c)(4) of this chapter;

(C) A payment transaction conducted by a person for the sale or lease of goods or services that a consumer selected from that person or its affiliated company's online or physical store or marketplace, or for a donation to a fundraiser that a consumer selected from that person or its affiliated company's platform; and

(D) An extension of consumer credit initiated through a digital application that is provided by a person who is extending, brokering, acquiring, or purchasing the credit or that person's affiliated company.

(ii) Covered payment functionality means a funds transfer functionality as defined in paragraph (a)(2)(ii)(A) of this section, a wallet functionality as defined in paragraph (a)(2)(ii)(B) of this section, or both.

(A) Funds transfer functionality means, in connection with a consumer payment transaction:

(1) Receiving funds from a consumer for the purpose of transmitting them; or

(2) Accepting from a consumer and transmitting payment instructions.

(B) Payment wallet functionality means a product or service that:

(1) Stores for a consumer account or payment credentials, including in encrypted or tokenized form; and

(2) Transmits, routes, or otherwise processes such stored account or payment credentials to facilitate a consumer payment transaction.

(iii) Digital payment application, for purposes of this subpart, means a software program a consumer may access through a personal computing device, including but not limited to a mobile phone, smart watch, tablet, laptop computer, or desktop computer. Examples of digital payment applications covered by this definition include an application a consumer downloads to a personal computing device, a website a consumer accesses by using an internet browser on a personal computing device, or a program the consumer activates from a personal computing device using a personal identifier such as a passkey, password, PIN, or consumer's biometric identifier, such as a fingerprint, palmprint, face, eyes, or voice. Operating a web browser is not an example of providing a digital payment application.

(iv) General use, for purposes of this subpart, means usable for a consumer to transfer funds in a consumer payment transaction to multiple, unaffiliated persons, subject to an exception for a payment functionality provided through a digital consumer payment application solely for the following:

(A) Using accounts described in § 1005.2(b)(3)(ii)(A), (C) or (D) of this chapter; or

(B) To pay a specific debt or type of debt including:

(1) Debts owed in connection with origination or repayment of an extension of consumer credit; or

(2) Debts in default.

(v) State means any State, territory, or possession of the United States; the District of Columbia; the Commonwealth of Puerto Rico; or any political subdivision thereof.

(b) Test to define larger participants. A nonbank covered person is a larger participant of the general-use digital consumer payment applications market if the nonbank covered person met both of the following criteria during the preceding calendar year:

(1) It provided annual covered consumer payment transaction volume as defined in paragraph (b)(3) of this section of at least 50 million consumer payment transactions; and

(2) It was not a “small business concern” as that term is defined by section 3(a) of the Small Business Act, 15 U.S.C. 632(a) and implemented by the Small Business Administration under 13 CFR part 121, or any successor provisions.

(3) Annual covered consumer payment transaction volume means the sum of the number of consumer payment transactions denominated in U.S. dollars that the nonbank covered person and its affiliated companies facilitated in the preceding calendar year by providing general-use digital consumer payment applications.

(i) Method of aggregating the annual covered consumer payment transaction volume of affiliated companies. The annual covered consumer payment transaction volume of each affiliated company of a nonbank covered person is first calculated separately, treating the affiliated company as if it were an independent nonbank covered person for purposes of the calculation. The annual covered consumer payment transaction volume of a nonbank covered person then must be aggregated with the separately-calculated annual covered consumer payment transaction volume of each person that was an affiliated company of the nonbank covered person at any time in the preceding calendar year. However, if any two or more of these companies facilitated a single consumer payment transaction denominated in U.S. dollars, that consumer payment transaction shall only be counted one time in the aggregated annual covered consumer payment volume calculation. The annual covered consumer payment transaction volumes of the nonbank covered person and its affiliated companies are aggregated for the entire preceding calendar year, even if the affiliation did not exist for the entire calendar year.

(ii) [Reserved]