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Mobile payments regulations to be examined by FDIC

December 19, 2012

App-based mobile payments may be the wave of the future, but the Federal Insurance Deposit Corporation (FDIC) is concerned about revenue losses for federal banks, data security issues for consumers and the assurance that compliance with all federal regulations are met.

App-based mobile payments may be the wave of the future, but the Federal Insurance Deposit Corporation (FDIC) is concerned about revenue losses for federal banks, data security issues for consumers and the assurance that compliance with all federal regulations are met. New regulations would likely have an effect on app developers, private financial institutions and retailers, and might signal further revisions of current laws regarding electronic environments, truth in lending, and consumer privacy protection.

App developers are facing further regulations from the Fair Trade Commission (FTC) regarding how data is stored and analyzed from consumer devices, and compounding with the FDIC initiatives, there may be big changes on the horizon when it comes to personal data in electronic environments, particularly when it comes to financial transactions. Further ramifications may be felt when it comes to big data collection, recurring billing and online banking, and therefore a variety of industries would have to consider new compliance measures.

The most immediate impact would likely be on mobile credit card processing, which has seen large gains in the last financial quarter of 2012. App developers and retailers should pay attention to developing news regarding these regulations in the New Year, and may want to begin the first quarter of 2013 evaluating security and payment policies.

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