Mobile Payments Heading Toward ‘Cocktail of Risks’

July 15, 2013

A U.K. risk-prevention consultancy warned that growth in the global mobile payments market is expanding so rapidly that a “cocktail of risks” will result. Riskskill, a division of UKFraud, said the scale of mobile-sector growth and the rate at which the technology is evolving are some of the factors that are increasing risk significantly for companies engaged in mobile payments.

“Riskskill is concerned that alongside other areas of rapid market change, a fast churn of product lifecycles and the sheer variety of product nomenclature might cause consumers to become confused and thus more vulnerable to fraudsters exploiting their confusion,” the company said. “This will also be compounded by the absence of adequate fraud systems which will not have been put in place by all the main players, at an early stage, as some will only just have kept up with competitive product development.”

The company also indicated that the broad range of organizations engaged in setting standards and developing regulations could cause confusion for market stakeholders and consumers alike.

“Once again, the most likely beneficiary of such confusion could well be ‘professional’ fraudsters,” Riskskill said. “The hope is then that standards bodies will harmonize with other similar organizations around them, especially those who take a lead.”