M-payments raise customer protection questions in Canada

According to a study entitled ‘Mobile Payments and Consumer Protection in Canada’ released by the Financial Consumer Agency of Canada (FCAC), customer protections vary across the Canadian marketplace, depending on the service provider.

Also, the study revealed that m-payment service providers may sell user data to third-party marketers, who then target consumers with advertising based on demographic, behavioral and geographic information. This practice, known as profiling, may provide benefits to consumers, but it may also pose new risks, particularly when products are marketed to vulnerable consumers.

Finally, the study revealed that the number of stakeholders involved in an m-payment transaction may increase the level of complexity related to dispute resolution and redress. In the event of an error or unfair treatment, a consumer may be unsure as to how or where to file a complaint or obtain redress.