New York S 9661: Relates to peer-to-peer mobile payment service security

Bill Text

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S09661 Summary:

BILL NOS09661 

&nbsp

SAME ASSAME AS A05730

&nbsp

SPONSORFAHY

&nbsp

COSPNSR

&nbsp

MLTSPNSR

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Add §399-jj, Gen Bus L; amd §403, Fin Serv L

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Directs every peer-to-peer mobile service to require users to create a personal identification code associated with the user's account that is required to be used when certain actions are taken and to require users to set a monetary amount for intended transfers above which the use of a personal identification number will be required to authenticate the user's identity.

Go to top S09661 Actions:

BILL NOS09661 

&nbsp

03/31/2026REFERRED TO INTERNET AND TECHNOLOGY

05/21/20261ST REPORT CAL.1325

05/26/20262ND REPORT CAL.

05/27/2026ADVANCED TO THIRD READING 

06/05/2026COMMITTED TO RULES

Go to topS09661 Committee&nbspVotes:

Go to topS09661 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS09661 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9661

 IN SENATE

 March 31, 2026
 ___________

 Introduced by Sen. FAHY -- read twice and ordered printed, and when
 printed to be committed to the Committee on Internet and Technology

 AN ACT to amend the general business law, in relation to peer-to-peer
 mobile payment service security; and to amend the financial services
 law, in relation to authorizing the financial frauds and consumer
 protection unit to enforce such provisions

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. This act shall be known and may be cited as the "Financial
 2 App Security Act".
 3 § 2. The general business law is amended by adding a new section 399-
 4 jj to read as follows:
 5 § 399-jj. Peer-to-peer mobile payment service security. 1. For the
 6 purposes of this section:
 7 (a) "Peer-to-peer mobile service" means any app or app service
 8 provided directly to users by an entity that is not an insured deposito-
 9 ry institution and that:
 10 (1) directly or indirectly receives and holds money belonging to
 11 users, or that facilitates transactions between insured depository
 12 institutions but exists separately from said institutions; and
 13 (2) whose primary functionality is to allow users to send and receive
 14 money through their mobile devices from a linked bank account or credit
 15 card or debit card using a recipient's cell phone number or email
 16 address or username.
 17 (b) "Biometric authentication" means either fingerprint or face iden-
 18 tification for access to a service, or verification of an in-app action.
 19 2. Every peer-to-peer mobile service shall require users to create a
 20 personal identification code associated with the user's account that is
 21 a minimum of four numeric characters associated with the user's account.
 22 When certain actions are taken, including but not limited to, actions
 23 defined in subdivision four of this section, the personal identification
 24 number must be used to authenticate the user's identity. The use of
 25 such personal identification code may not be substituted for any form of
 26 biometric authentication.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01953-01-5

 S. 9661 2

 1 3. Every peer-to-peer mobile service shall require users to set a
 2 monetary amount for intended transfers above which the use of a personal
 3 identification number will be required to authenticate the user's iden-
 4 tity and provide an option for users to opt-in of such requirement.
 5 4. The following actions require use of a personal identification
 6 number when using a peer-to-peer mobile service:
 7 (a) any payment transaction initiated by the user exceeding the mone-
 8 tary limit set by said user;
 9 (b) payment transactions initiated by the user that would bring said
 10 users twenty-four-hour payment transaction amount exceeding the monetary
 11 limit set by said user starting from the first transaction;
 12 (c) payment transactions initiated by the user to another user whose
 13 account was created less than twenty-four hours prior to said trans-
 14 action;
 15 (d) any payment transactions initiated by the user after three
 16 successful payment transactions initiated by the use