The European Central Bank has proposed recommendations to improve the security of mobile payments, ranging from customer authentication to data protection.
Covering 14 recommendations, the draft includes all mobiles payments used to initiate a transaction, including contactless, app-based or mobile network operators’ channels.
The proposed draft states that all mobile payment service providers should protect transactions through strong authentication.
Some of the recommendations included in the draft are imposing a limit to the number of incorrect log-in attempts a user gets, strong transaction monitoring mechanisms to spot fraud, data protection rules, and a requirement to log all transactions with an audit trail.
The ECB’s proposal is open until 31 January 2014 and it is expected that the final recommendations will be implemented by February 2017.
ECB said that implementing less tough measures will create a difference in security requirements compared with the traditional card payments, which it says could be difficult to justify.

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By GlobalData