Responses were received from 16 jurisdictions* and are available to read in the Banking Law Committee newsletter May 2009. We would like to thank all contributors.
The main aim of this survey was to explore whether the current legal frameworks in different jurisdictions allow for using mobile phones as payment instruments on a similar basis to debit or credit cards.
The survey indicated that the degree of readiness of legal systems to use m-payment solutions differs in countries that have already developed an m-banking system compared to those countries that lack the legal background for such a system.
There is also an interesting tendency: those jurisdictions where the concept of e-money was recognised have relatively fewer legal obstacles to implementing m-payment solutions. The regulations on e money were innovative and have, in effect, prepared the legal ground for more advanced payment solutions.
It would, at present, be very difficult to adopt a universal m-payment system. Regulations, even within the EU, are not harmonised. Moreover, differences exist in jurisdictions on the role of non-banking entities in m-payment structures. That all indicates that there are areas of law that still need to be developed. The good news is that in most of the jurisdictions that were surveyed, only some amendment to the existing legal framework would be required. It seems that, for example in many EU countries, the aim could be achieved by implementing the EU Payment Services Directive.
Dr Ewa Butkiewicz
IBA Banking Law Committee Publications Officer
Further information on m-payments
*The countries covered are Bulgaria, Colombia, Denmark, Finland, Hungary, India, Indonesia, Malta, Poland, Portugal, Republic of Ireland, South Africa, Spain, Switzerland, the United Kingdom and the United States.
In early 2009, the Banking Law Committee conducted a multijurisdictional survey on the use of mobile phones as payment instruments (m-payments multijurisdictional survey).