Canadian cards code of conduct to be extended to mobile payments

The Canadian finance ministry is proposing to include a section on mobile payments in its Code of Conduct for the Credit and Debit Card Industry, to assure transparency, fairness and competition.

Ted Menzies, the Canadian finance minister who proposed the addendum to the code, said: "While we support new and convenient payment options, small businesses and consumers should not be punished with new hidden fees or undisclosed conditions.

The proposal comes in response to the findings of the Task Force for the Payments System Review, launched in 2010. In March 2012, the Task Force put forward some recommendations for the government, including the suggestion to partner with the private sector to create a mobile ecosystem.

Also in response to the Task Forces call for more regulation and collaboration, in May 2012 the banking industry and credit union system announced the launch of the Mobile Reference Model, a set of voluntary guidelines for the development of mobile payments at the point-of-sale in Canada.

Mobile payments are increasingly gaining ground in the country. Canada ranked second in the MasterCard Mobile Payment Readiness Index released in May 2012, coming only after Singapore and positioning head of the US and Kenya.