Ever use your smartphone to pay for parking or split the dinner bill with a friend? More people are using their phones as a mobile wallet and most mobile transactions work just fine. But with technology constantly evolving the rules that should protect consumers simply haven’t caught up.
In this animated video, follow along as Miles and his friend Pearl spend the day together, banking and buying music and coffee, all with their phones. Are the risks of using mobile payments holding people back and what can be done about them?
For more facts on mobile payments visit: http://www.pewtrusts.com/mobilepayments.
Smart phones can be used for all kinds of things these days.
Ok, we get it and increasingly more people are using their phones as a mobile wallet. You can pay for parking, donate to a worthy cause or split a bill with a friend.
Most mobile transactions work just fine, but with technology constantly evolving, the rules that should protect you simply haven’t caught up. And government oversight isn’t clear.
Meet Miles. Miles is busy and likes to pay for things with his phone. Yesterday, using his bank’s mobile app, he deposited a birthday check from his grandma. Happy Birthday, Miles!
Normally when Miles deposits a check at his bank, the funds are available the next business day. But since his mobile deposit isn’t regulated the same way, Miles’s money may not be available for several days.
Today, Miles is hanging out with his friend, Pearl. Pearl stops to fill up her car with gas. Miles offers to pitch in using a mobile app. He thinks his birthday money has already cleared. Miles doesn’t know it yet, but his bank won’t post Grandma’s check for a few more days, so he actually only has $10.
That gas just cost an extra $35 in overdraft fees. Yikes! Miles, did you give the bank permission to overdraw your account for a fee?
Like a lot of people, Miles doesn’t remember. And banks may not have to ask permission to overdraw your account for mobile transfers – like they’re required to with debit card and ATM transactions.
Next, Miles and Pearl stop at their favorite coffee shop. Miles, are you concerned about data privacy? Miles likes the convenience of mobile payments and hasn’t thought much about it. But if he did run into problems, it’s not clear who’s in charge of protecting his data.
Last stop -- the record store. Pearl tries to pay with her mobile wallet. But, the money is gone!
Unfortunately, money stored directly on mobile wallets may not have the same protections as checking accounts. Financial institutions provide fraud protection and deposit insurance while others aren’t required to by law.
Pearl, did you read your mobile wallet agreement? One tap of a finger may bind a consumer to a contract even if it is hard to read or unclear.
With the right rules, Miles and Pearl’s money would be protected. Policymakers should update rules and laws to make mobile payments simple, safe, and secure for everyone. For more information, click here.
Somalia were the first used mobile money since since 2005 .I think its new to the rest of the world but i think its lil bit different coz they only deposits money to their phone number .so whenever they want buy something they use their phone number can you imagine a country without no government?
The problem is not that Facebook and Google are the only advertising platforms. The problem is that they are considered mainstream media and without these two, the trend of cryptocurrencies gaining legitimacy is delayed. That is right, I said delayed not blocked or prevented.
The World Has Changed.
Five years ago, when bitcoin was unknown to most people, this might have been a fatal move. Today is a different story. I recently traveled to a remote mountain town in the interior of Mexico. Everyone I met had heard about Bitcoin and eyes lit up with excitement when I ask if I could pay for lunch with bitcoin.
Today are dozens of websites dedicated to cryptocurrencies, either holding them, exchanging them or just writing about them. Probably the most effective advertising remains on Google, it is called Google Search and it is free.
If someone wants to learn about owning bitcoin or any other currency, there is a ton of educational information.
The Flipside Is Being Ignored.
Not All Regulation Is Inherently Bad.
If we examine the full spectrum of regulation to this point on a global scale there is one common target most everywhere. That is the practice of exchanges. So far there has been little or not regulation, threatened or enacted, to protect investors from loss of funds due to security breaches.
Capitulation Is A Good Sign.