House Energy & Commerce Committee is looking into concerns regarding mobile payments security
Mobile payments will reach a new high this year in the United States, powering by the growing adoption of new payment services that allow consumers to shop online more conveniently. According to recent reports from CNET and Juniper Research, some two-thirds of adults in the country now own a smartphone, with approximately 36 million people expected to make a mobile transaction this year. This information was presented to a hearing of the House Energy & Commerce Committee, which has been expressing concerns regarding mobile payments fraud.
Security continues to be a significant problem in the mobile space
Security in the mobile payments field has been a point of concern for federal officials for some time. Many consumers have become the victims of fraud in the past, following high-profile data breaches that targeted some of the country’s largest retailers. The hearing found that while most mobile payments solutions are, indeed, quite secure, they do not have the same legal and legislative protections that more conventional payment solutions enjoy.
Committee will not yet be taking legislative action on mobile security
The House Energy & Commerce Committee has noted that the hearing was a preliminary hearing concerning mobile payments security. The committee has not yet announced plans concerning what can be done to improve security. As such, there will be no legislative action taken on issues regarding security for the time being. The committee is seeking more information from stakeholders in the mobile payments space. This information could be used to improve the overall mobile payments space, ensuring that consumer information is well protected in the future.
Ensuring the security of consumer information remains a top priority in the mobile space
The mobile payments space is still relatively new. While many of the organizations participating in this space have extensive experience regarding commerce, they are finding the mobile space to be exposed to significant risks that they are still attempting to adapt to. More regulatory oversight may be needed to ensure consumer protection, but the federal government must collect more data before taking any significant legislative action on the matter.