Mobile payment industry may not be regulated properly

Though technological breakthroughs have yielded many positive results by way of consumer credit options, mobile payments present an entirely new challenge to prevent fraud and identity theft. The Wall Street Journal recently published a story explaining the ways in which the mobile payment sector deserves a thorough look by lawmakers in Washington. According to the news provider, alternative payment options, including everything from chip technology in phones to online commerce, may not be adequately regulated. Last Friday, the source notes, a House Subcommittee on Financial Institutions and Consumer Credit hearing involved testimony that discussed the necessary steps toward more effective security regulations. The hearing also included conversation regarding the prepaid card industry, as providers are often not financial institutions and, as such, do not fall under the sector's commonly held regulatory compliance standards. Earlier this year, the Huffington Post reported that Deloitte data forecasts mobile payments to hold 21.3 percent of all transactions by the end of this year, up from just 6.8 percent in 2009. This represents a rapidly growing necessity among businesses for strong security practices to protect against fraud and potential loss of face.