Liability is beginning to shift away from consumers and on to companies
As mobile payments become more prominent, liability is beginning to shift. Liability shift places the burden of fraudulent payments on merchants and banks that are not making use of new technology and security standards. Previously, such liability had been placed on the consumer or, more accurately, those conducting fraudulent charges. Because fraud in the mobile payments space can be difficult to track down, merchants and financial institutions are now being held responsible for their lack of security.
Companies not using new technology and security standards could be liable for fraudulent charges
Liability shift is being powered by the availability of new mobile payment networks, such as PayPal. These networks have changed the way that commerce works, making it more digital and mobile-centric. As payments become digital, they are being exposed to the risks that exist in the online world, which are quite serious. Companies that do not take security seriously but accept mobile payments are also at risk. At times, it can be easier to target these companies because they do not use new technology and adhere to new security standards that it is to attack consumers directly.
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Consumer confusion could make mobile payments more complicated
Liability is not the only issue that exists in the mobile payments space. Confusion can also be a problem for consumers that are not familiar with new payment networks and ways to conduct commerce. There are a vast multitude of mobile payment services and tools currently available, but most of them work differently from one another. QR codes are, perhaps, one of the more common payment tools, but they require their own mobile apps to work properly. NFC technology is another tool that facilitates mobile transactions, and only devices equipped with an NFC chip and supported application can use this technology.
Large number of apps and services make mobile payments somewhat inconvenient
Keeping track of the mobile payments services that are available can be complicated for consumers. The large number of apps that consumers must remember and use at the appropriate time can be considered inconvenient , which is counterintuitive to the basic premise of mobile payments. Liability issues combined with potential consumer confusion can create some frustration in the mobile payments field.