Insights overview

Mobile payments: technological, contractual and regulatory convergence

After many years of promise, mobile payments are finally starting to gain traction in the mass market. In July 2016 it was reported that a study had found that smartphones accounted for a greater proportion of web-shopping traffic than more standard computers. Services such as Apply Pay, Samsung Pay and Paym are widely known, and there are now several mobile-only banks that use mobile technology to full effect in providing financial services that could previously only be provided by retail banks with a vast branch network.

This note examines the key concepts in the area of mobile payments, the principal regulatory risks and pitfalls involved, and how these are likely to affect the partnerships that will need to be struck between different actors along each mobile payments chain. How the law applies to this sector will necessitate detailed consideration as the sector develops.