Out-Law News 1 min. read

Global brands to discuss mobile payments systems interoperability


Major credit card companies, mobile network providers, technology giants and payment processing companies are among those that will seek to improve the way mobile payment systems interact with one another, an international trade association has announced.

The Electronic Transactions Association (ETA) said that it has formed a new Mobile Payments Committee with the aim to propose measures that address existing "issues" in the mobile payments sector.

Among the problems that the Committee will seek to address is the forging of better "business relationships" ETA said are needed to "foster innovation and achieve network interoperability among merchants, credit card companies, mobile networks, equipment operators, equipment manufacturers and financial institutions."

ETA has more than 500 members and represents companies that offer electronic transaction processing products and services. The new Committee has representation from major US mobile network operators AT&T, Sprint, T-Mobile and Verizon, as well as Google, Visa, MasterCard and PayPal, among others. The Committee will meet once a month from the end of August with the aim of proposing measures to improve the mobile payments industry.

"While these proposals will remain voluntary, the Mobile Payments Committee will work with member companies to implement them in a comprehensive manner to ensure that the new field of mobile payments provides consumers and merchants with the best, most reliable, and most secure system," according to a statement issued by ETA.

Among the other tasks of the Committee will be to determine whether establishing 'best practices' across industry help to "ensure merchants and consumers have access to the most innovative and effective mobile payments solutions", the ETA statement said. A drive to educate legislators, regulators, merchants and consumers about mobile payments is also on the Committee's agenda.

ETA chief executive Jason Oxman said that enabling consumers to make transactions using mobile devices was a "game-changing business opportunity" for the payments industry.

"Our industry must work collaboratively to ensure that the regulatory and business environment promotes innovation and cooperation," he said. "Our Mobile Payments Committee will help ensure that consumers and merchants have access to an efficient, reliable and secure mobile payments system."

Jackie Moran, executive director of federal relations at Verizon and the chair of the Mobile Payments Committee, said that the emerging mobile payments industry has the potential to boost global e-commerce.

"The Mobile Payments Committee is designed to ensure that the early stages of mobile payments are handled in the best possible way: With insight and ingenuity from all the players – private as well as public sector -- involved in the exciting future of mobile payments." Moran said.

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