PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

FDIC Publishes Study on Mobile Payment Risks

Mercator Advisory Group by Mercator Advisory Group
January 8, 2013
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Four FDIC executives have published a paper on the security issues unique to the new generation of mobile payment solutions. The executives found that, although the formats are new and modern, most mobile payment solutions being developed today already are accounted for in established regulations and requirements. Financial institutions already are familiar with the major risks of mobile payments because most of those payment types ultimately settle transactions using consumers’ bank account or card information.

They did, however, note a few risks. For example, a major risk of mobile payments is that many solutions are provided by non-banking entities unfamiliar with the necessary measures required to ensure transaction security, and most solutions require cooperation between multiple players.

Noted the FDIC:

“Unlike most banking products that allow institutions to control much of the interaction, mobile payments require the coordinated and secure exchange of payment information among several unrelated entities.”

One of the more interesting points the study addressed was FDIC’s prediction that no form of mobile payment would ever become truly dominant. Generally, the debate takes the format of whether NFC or QR codes will win out in the end. One person describes the technological benefits of NFC, the other explains how much more cost effective and wide reaching QR codes have the potential to be. For some reason, it is rarely ever concluded that the transactions that require advanced technology will use an NFC wallet, and those that get more benefit from using an inexpensive solution will stick with QR codes.

While there are plenty of good arguments that either one or the other option is advantageous enough to overtake the mobile payments market entirely, the idea that the two technologies can coexist indefinitely is worth consideration as well.

Click here to read more from the FDIC.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023
    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023
    cross-border payments

    How to Implement Effective and Innovative Cross-Border Payment Strategies

    January 24, 2023
    credit card experiences, digital payments, b2b payments

    Will Consumer-to-Business Payment Trends Drive B2B Global Growth in 2023?

    January 23, 2023
    Faster Payments Faster Identity Verification, connected car, payments

    2023 Predictions: Authentication, Digital Identity, and In-Car Payments

    January 20, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the U.S. Bank report - Real-time payments