The global mobile payments market is poised for exponential growth in the coming years. Around the world, mobile payment technology has begun, in many ways, to outpace regulatory action. The absence of industry-wide agreement on implementation of best practices also muddled efforts to establish effective, streamlined regulation of this emerging payment space.
Some nations initiated the development of regulatory outlines in hopes of encouraging continued competition within the mobile payments marketplace. Cutting costs and encouraging increased consumer adoption are top of mind.
A recent Mercator Advisory Group report, “Global Mobile Payments Regulations: Hoping for Technology Standardization” examines current and proposed mobile payments regulation around the world. The paper outlines the size and scope of the market, expounds on two varied methods of regulation and offers illustrations of different regulatory approaches from various countries.
Three potential blueprints to support cooperation between mobile network operators and financial institutions (FIs) are highlighted, as well as the pros and cons for the mobile payments sector of each blueprint.
“To date, very few countries around the world have opted to create the initial regulatory frameworks required to oversee the emergence of mobile payments. This is in part because of different regulatory attitudes among countries, but a more significant factor is the fact that the mobile payment and the technology powering it are still evolving,” Tristan Hugo-Webb, associate director of the International Advisory Service, wrote in the report.
A synopsis of the global mobile payments landscape (both current and future), a summary of existing global mobile payments regulation and a breakdown of the case for interoperability and business models are included in the paper.
With the Consumer Financial Protection Bureau ramping up scrutiny of mobile payments, the regulatory environment for the U.S. mobile payments arena will no doubt undergo numerous changes in the coming months and years. Global regulatory action will likely impact how U.S. mobile payment regulations shake out. For further insight, read the full report.