The Federal Reserve Bank of Boston recently released a paper that examines how mobile payment technologies, chiefly NFC and cloud based technologies, address security of mobile payments at the point of sale. The paper distinguishes between a mobile wallet, digital wallet and hybrid wallet based on the location where consumer personal information is stored. After taking a closer look at NFC and cloud based models, the authors explore the advantages and disadvantages of Secure Element placement options as well as the security benefits and challenges to cloud-based mobile payments. QR codes and direct carrier billing models are also briefly discussed. The report concludes with a summary of consumer risks and mitigation opportunities for stakeholders to consider.
Our Payments Team addresses changes and continuities in the payments industry every day—leveraging our many years of industry experience and our presence on both coasts and in China. On paymentlawadvisor, we offer commentary on new developments that seem particularly significant, as well as resources that we believe can be helpful to others who are tasked with anticipating, understanding and addressing these developments.