House Energy & Commerce subcommittee hearing on mobile payment security

Members of the House Energy & Commerce Subcommittee on BBB who support wider adoption of mobile payments:

* Rep. Michael Burgess (R-Texas)

* Rep. Leonard Lance (R-New Jersey)

* Rep. Brett Guthrie (R-Kentucky)

* Rep. Gregg Harper (R-Mississippi) said mobile payments will help his constituents given that “17 of the most unbanked places are in Mississippi”.

* Rep. Susan Brooks (R-Indiana) supported expanding adoption of mobile payments to benefit small businesses and entrepreneurs. She noted that mobile payments are prevalent in Third World countries like Tanzania.

* Rep. Pete Olson (R-Texas) supported expanding mobile pay provided the consumers’ personal identifiable information (PII) are protected.

Members of the House Energy & Commerce Subcommittee on BBB who have raised concerns regarding mobile payments:

* Rep. Jan Schakowsky (D-Illinois) was concerned about consumer privacy and the kind of data collected by mobile pay apps. She suggested that consumer privacy and data security protections should be standardized.

* Rep. Marsha Blackburn (R-Tennessee) raised questions about MCX’s data breach in October 2014. Jessica Deckinger, Chief Marketing Manager at Merchant Customer Exchange (MCX), said the data breach occurred due to a “security issue” by MCX’s subcontractor. “That subcontractor was immediately terminated,” said Deckinger. MCX also notified customers whose email information were stolen within hours of learning about the breach.

* Rep. Frank Pallone (D-New Jersey) advocated for more consumer protections for unauthorized charges made via mobile payment, specifically for mobile payment services linked to a consumer’s phone bill rather than credit or debit card. “The consumer’s ability to dispute unauthorized charges on a mobile payment varies depending on the payment method being used. For example, a consumer’s liability for unauthorized charges on a credit card after a certain date is lower than on a debit card,” said Pallone. “What protections are available to consumers who do not have access to a credit or debit card and choose to link a mobile payment to their mobile phone bill?”

* Rep. Yvette Clarke (D-New York) pushed for greater transparency, particularly the disclosure of third party vendors to consumers. “Unlike simple cash transactions, using a mobile payment system can bring in unseen third parties,” said Clarke. “How can consumers consent to business relationships with entities they are unaware of?”

* Rep. Tony Cardena (D-California) acknowledged that unbanked consumers living in inner cities and rural areas could potentially benefit from mobile payment but sought assurances that mobile payment companies provide adequate safeguards. “How can mobile payment providers better reach minority communities and underserved or poor communities and ensure that these consumers also enjoy the safe and community commerce that everybody else expects or can experience?” asked Cardena.

* Rep. Adam Kinzinger (R-Illinois) would favor wider adoption of mobile pay provided that the industry address eavesdropping, data manipulation, and interception of NFC-based mobile payments.

Transcripts:

Transcript: PayPal VP John Muller’s testimony on mobile payment security
Transcript: MCX CMO Jessica Deckinger’s testimony on mobile payment security
Transcript: Sarah Jane Hughes’s testimony on mobile payment security
Transcript: Samsung Pay CCO Sam W. Ahn’s testimony on mobile payment security
Transcript: Rep. Michael Burgess’s Q&A on mobile payment security
Transcript: Rep. Jan Schakowsky’s Q&A on mobile payment security
Transcript: Rep. Marsha Blackburn’s Q&A on mobile payment security
Transcript: Rep. Frank Pallone’s Q&A on mobile payment security
Transcript: Rep. Leonard Lance’s Q&A on mobile payment security
Transcript: Rep. Yvette Clarke’s Q&A on mobile payment security
Transcript: Rep. Gregg Harper’s Q&A on mobile payment security
Transcript: Rep. Tony Cardenas’s Q&A on mobile payment security
Transcript: Rep. Brett Guthrie’s Q&A on mobile payment security
Transcript: Rep. Adam Kinzinger’s Q&A on mobile payment security
Transcript: Rep. Susan Brooks’s Q&A on mobile payment security
Transcript: Rep. Pete Olson’s Q&A on mobile payment security

Learn More:

House Energy & Commerce Committee: The Disrupter Series: Mobile Payments
House Energy & Commerce Committee: PayPal VP John Muller’s written testimony (PDF)
House Energy & Commerce Committee: MCX CMO Jessica Deckinger’s written testimony (PDF)
House Energy & Commerce Committee: Professor Sarah Jane Hughes’s written testimony (PDF)
House Energy & Commerce Committee: Samsung Pay CCO Sam W. Ahn’s written testimony (PDF)