1. Digital Agenda Assembly 2012 Mobile Payments: The Demand Side Perspective from the FTC Stacy Feuer Assistant Director for International Consumer Protection U.S. Federal Trade Commission The views expressed are those of the speaker and not necessarily those of the FTC or any individual Commissioner. 1

2. “ Nearly 100 years of experience gives the FTC a unique perspective when it comes to anticipating and evaluating new technology, and using appropriate measures of enforcement, education, and public engagement to address evolving markets and business models.”

3. FTC Consumer Policy in the Digital Economy

4. ResponsePercent Q16. Used online banking in the past 12 months 68% Q12. Used telephone banking in the past 12 months 33% Q22. Used mobile banking in the past 12 months 21% Q29. Used mobile payment in the past 12 months 11% 4

5. ResponsePercent I'm concerned about the security of mobile payments 42% I don't see any benefit from using mobile payments 37% It's easier to pay with another method like cash or a credit card 36% I don't have the necessary feature on my phone 31% I don't trust the technology to properly process my payments 20% The cost of data access on my wireless plan is too high 15% Other 12% It's difficult or time consuming to set up mobile payments 9% I don't know of any stores that let you pay with your mobile phone 9% It is not offered by my bank or credit union 4% My bank charges a fee for using mobile payments 2% Refused to answer2% 5

6. ResponsePercent Compare prices when shopping 48% To receive offers and promotions based on where you are 33% Track your finances on a daily basis 31% To receive and manage discount offers and coupons 31% Buy things at the point of sale 25% As a membership card 24% As a form of photo identification 23% Purchase tickets to events 23% Organize and track gift cards, loyalty and reward points 21% As a ticket for buses 19% As a key to enter your house 18% Refused to answer18% 6

7. 7  Held April 26, 2012  Topics Covered:  Mobile Payments: The Present and the Future  Opportunities and Challenges for Businesses and Consumers  Legal Landscape and Dispute Resolution  Drilling Down: Fraud Mitigation and Data Security  Drilling Down: Privacy Issues

8. 8  Past Workshops: ◦ July 2008 FTC Town Hall meeting: Pay on the Go - Consumers & Contactless Payment  Introduction to Contactless Payment: What it Is and How it Is Used  Consumer Understanding and Acceptance of Contactless Payment Technology  Contactless Payment Cards & Mobile Payment Devices  September 2008 Transatlantic RFID Workshop on Consumer Privacy and Data Security  RFID in Contactless Payment Systems

9. 9  Mobile Payments: The Present and the Future  Current Usage of Mobile Payments in the United States  Increased adoption of mobile payments could lead to:  Increased Convenience  Enhanced Security  Lower costs

10. 10  Mobile Payment Disclosures: Staff Observations  Reviewed Disclosures of 19 Mobile Payment Providers currently offering services in the U.S.  Examined Disclosures Regarding:  Dispute Resolution Policies  Information Collected About Consumers  Sharing with Third-parties

11. 11  Legal Landscape and Dispute Resolution  What is total liability for consumers for unauthorized or fraudulent charges?  Do consumers have chargeback rights?  Do consumers know who they should raise complaints with?  Varying Substantive Legal Protections in the U.S.

12. 12  Drilling Down: Fraud Mitigation and Data Security  Consumer concern regarding security of mobile payments  Increased ramifications of lost or stolen phone  How is data being secured?  How do consumers detect fraudulent or unauthorized transactions?  New fraud detection and mitigation tools

13. 13  Drilling Down: Privacy Issues  What information is being collected about consumers?  SSN  Geo-location Information  New information flows from traditional payment methods  How is that information being used and who is it being shared with?  Are consumers being informed adequately?

14. 14  Next Steps:  Reviewing Comments  http://ftc.gov/bcp/workshops/mobilepayments/ http://ftc.gov/bcp/workshops/mobilepayments/  Continue Coordination with domestic and foreign counterparts, as well as industry and consumer stakeholders on mobile payment issues  Submitted Comments to the European Commission’s Green Paper on Mobile Payments

15. 15  Next Steps:  Applicability of Existing Laws and Guidance to Mobile Payments:  March 2012 Privacy Report  Section 5 of the FTC Act

16. Stacy Feuer Assistant Director for International Consumer Protection Federal Trade Commission Federal Trade Commission 600 Pennsylvania Ave., N.W. 600 Pennsylvania Ave., N.W. Washington, D.C. 20850 Washington, D.C. 20850 Ph: +1(202) 326-3072 Ph: +1(202) 326-3072 Fax: (202) 326-3045 Fax: (202) 326-3045 e-mail: sfeuer@ftc.gov e-mail: sfeuer@ftc.gov