As part of its efforts to ensure that consumers are protected in the growing mobile marketplace, the Federal Trade Commission issued a staff report today highlighting key issues facing consumers and companies as they adopt mobile payment services. The report, titled “Paper, Plastic… or Mobile? An FTC Workshop on Mobile Payments,” is based on a workshop held by the Commission in 2012 to examine these issues.
The mobile payments arena is growing quickly, and the report notes that mobile payment systems can provide innovative and convenient options for consumers. But the report also notes three major areas of potential concern for consumers.
First, the report encourages companies to develop clear policies on how consumers can resolve disputes arising from a fraudulent mobile payment or an unauthorized charge.
Consumers fund mobile purchases using a variety of sources, from credit cards to prepaid debit cards to charges placed on their mobile phone bills. Under current regulations, each of these funding methods has a different process for consumers to dispute unauthorized charges, with varying levels of consumer protection. This creates a potentially confusing landscape for consumers trying to decide which mobile payment system to use and how to fund these payments, the report notes. Here to read more.