Mobile Payments and Consumer Protection

Protecting consumers who use mobile payments
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This policy briefing note provides a background on the use of mobile payments globally and identifies key issues related to consumer protection among users of mobile payments. It evaluates the debate about regulation of mobile banking, and discusses how the adoption of mobile technology for remittances can bring about more transparency. The note states that the increase in the use of mobile phones suggests a significant opportunity for expansion of financial access, especially in developing countries. Key consumer protection issues with respect to mobile banking that are identified in the note include:
  • There is a lack of tangible proof of payments;
  • Mobile account crediting systems are unreliable in most cases;
  • Mobile payment technical platforms are not properly standardized or regulated;
  • There is no specific regulatory framework concurrently engaging the main partakers in the provision of mobile payment services;
  • Absence of digital certification of generic mobile phones increases the risk of fraud;
  • Despite the rise in the use of mobile payments, access to these services is still limited;
  • Treatment of dormant assets in the case of number termination, loss of phone, and death is not adequately addressed.

About this Publication

By Simpson, R.