What\u27s In Your Wallet? Addressing the Regulatory Grey Area Surrounding Mobile Payments

Mobile payment applications are poised to replace traditional checks, credit, and debit cards at cash registers around the country. Largely seen as the next step forward for increased convenience in shopping, mobile payments are making it easier for American consumers to make payments simply by having their phone on them at all times. However, until recently, many of the applications that consumers use to make their mobile payments may fall out of the American regulatory system already in place for banks and bank payment sources. The recently formed Consumer Financial Protection Bureau proposed regulatory changes in 2014 that include mobile payment systems and applications in the wheelhouse of services various banking regulations cover. Still, in light of many highly publicized privacy breaches and security hacks in 2014, many consumers are wary of the trustworthiness of mobile payment applications. In order to address these concerns, and ensure that mobile payments have a foothold in the American marketplace, the Consumer Financial Protection Bureau should adopt more regulations than what it proposed in 2014 by using their ability to promulgate rules using informal rulemaking procedures to help establish data security and privacy standards in the mobile payment marketplace