Federal Trade Commission, USA has in the last week released a report highlighting the security concerns in the growing mobile payments market.
It is in the interests of companies engaged in mobile payments to address the concern areas especially relating to consumers, so that in the long run, the mobile payments market will grow at a fast pace.
The report is based on a workshop held by the Commission in 2012 to examine key issues facing consumers and companies as they adopt mobile payment services.
The report broadly deals with three major areas which can be potential concern for consumers:
01) Dispute resolution: – Disputes can be due to fraudulent mobile payment or an unauthorized charge. Unauthorized charging is also known as ‘cramming’.
02)End-to-End Security: Consumers prefer end-to-end security for their payments through mobiles. End-to-end encryption is suggested. Industry wise common standards will be easy to implement.
03)Privacy: There should strong privacy practices, as Mobile payment providers have access to a much larger cache of personal information stored on the consumer’s mobile device, than traditional card transaction payment processing companies.
The workshop held by the commission in 2012 examined the use of mobile payments in the marketplace and how this emerging technology impacts consumers. This event brought together consumer advocates, industry representatives, government regulators, technologists, and academics to examine a wide range of issues, including the technology and business models used in mobile payments, the consumer protection issues raised, and the experiences of other nations where mobile payments are more common.
It should be noted, that the above points are not valid in USA Market but to markets worldwide. The consumer concerns all over the world are on similar lines.
Re-disseminated by Prashant N. Banker by daytime, Blogger by night.
- FTC report recommends mobile payment services offer transparency and security to customers (theverge.com)
- FTC: Mobile carriers should take steps to fight bill cramming (networkworld.com)
- Mobile Payment Transactions May Reach $1 Trillion by 2015, Heavy Reading Finds (prnewswire.com)
- Mobile Carriers Should Take Steps to Fight Bill Cramming (cio.com)