Alert July 10, 2012

CFPB Calls for Regulations on Mobile Payments

In a Statement for the Record before the House Financial Services Subcommittee on Financial Services and Consumer Credit, the CFPB’s Assistant Director of Card and Payment Markets, Marla Blow, announced that the CFPB is closely monitoring new developments and changes in the mobile payment marketplace.  The CFPB acknowledged that there are both opportunities and challenges that will come with the increasing use of mobile payments, and that the current regulations need to be examined to determine:  (1) if there are barriers to successful mobile payment systems and (2) whether regulations need to be updated to address new concerns.  Two of the main concerns are the extent to which technology companies will begin to play roles traditionally performed by banks and whether existing regulations apply to this changing environment.  The CFPB will continue to work with other state and federal agencies to create a common set of rules for the mobile payment market.