Over the past few years, it has become increasingly popular to use your phone to complete payment transactions. This technology is great for consumers because it is fast and sometimes more convenient than having to deal with credit cards or other forms of payments. However, the video I watched this week, “Mobile Payments: The Good, the Bad, and the Confusing”, raised the issue that regulation has not been able to keep up with the trend of mobile payment systems. Therefore, customer’s funds may not be as safe as they appear on mobile platforms. The first unclear rule they bring up is whether banks are allowed to take overdraft fees without warning from an account due to mobile payments, unlike the standardized processes of dealing with overdrafts from debt cards. There is also no clear indication of who should protect data of people using mobile wallets. Finally, mobile wallets do not have the same protection as checking accounts, so money can be stolen more easily.
I think more regulation needs to be made to protect consumer’s money online. I understand that technology moves so fast it is difficult for lawmakers to keep up with changes. However, these are legitimate threats to people, and currently there is not a clear path on how the government is protecting us.