Payment Law Advisor Legal Commentary and Resources for the Payment Industry

Federal Reserve Bank of Boston Examines Security of Mobile Payment Technologies

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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.