Jan 16 (Reuters) - Two technology trade groups sued the

U.S. Consumer Financial Protection Bureau on Thursday to block a

new rule giving the regulator supervisory authority over payment

apps and digital wallets from large non-banks.

NetChoice and TechNet said Congress did not give the CFPB

free rein to aggressively, arbitrarily and capriciously police

large non-banks offering consumer financial services through

such products as Apple Wallet, Google Pay and

Venmo.

The trade groups also said the CFPB identified no consumer

risks or gaps in regulatory oversight that justified the rule,

which covers companies that process at least 50 million

transactions annually, and more than 13 billion overall.

According to the complaint filed in Washington, D.C.,

federal court, "The bureau failed to show what consumer risks

the rule was even meant to alleviate in its haste to dream up a

problem in search of a solution."

The CFPB had no immediate comment on the lawsuit.

In announcing the final rule on Nov. 21, the CFPB said it

would help give consumers who use big technology companies for

processing payments the same protections against fraud, privacy

violations and account closures they enjoy at banks.

CFPB director Rohit Chopra said at the time that digital

payments "have gone from novelty to necessity and our oversight

must reflect this reality."

NetChoice director of litigation Chris Marchese in a

statement on Thursday called the rule an "unlawful power grab"

that could stifle innovation, reduce competition and raise

prices.

Carl Holshouser, a TechNet executive vice president, in a

separate statement said that the rule could also subject digital

payment service providers to oversight of tax payments and other

products that go beyond the CFPB's mission.

It is unclear whether Republican President-elect Donald

Trump's administration or the Republican-controlled Congress

might try to change or eliminate the rule, amid expectations

they will try to reduce the CFPB's supervisory authority.

The case is TechNet et al v CFPB et al, U.S. District Court,

District of Columbia, No. 25-00118.