Task Force on Financial Technology: What’s in Your Digital Wallet? A Review of... (EventID=114690) скачать в хорошем качестве

Task Force on Financial Technology: What’s in Your Digital Wallet? A Review of... (EventID=114690)

Connect with the House Financial Services Committee Get the latest news: https://democrats-financialservices.h... Follow us on Facebook:   / housefinancialcmte   Follow us on Twitter:   / fscdems   ___________________________________ On Thursday, April 28, 2022, at 2:00 p.m. (ET) Task Force on Financial Technology Chairman Lynch and Ranking Member Davidson will host a hearing entitled, “What’s in Your Digital Wallet? A Review of Recent Trends in Mobile Banking and Payments." ___________________________________ Witnesses for this one-panel hearing will be: • Raúl Carrillo, Associate Research Scholar, Yale Law School; Deputy Director, Law and Political Economy Project • Mishi Choudhary, Legal Director, Software Freedom Law Center • Renita Marcellin, Senior Policy Analyst, Americans for Financial Reform • Kia McAllister-Young, Director, America Saves, Consumer Federation of America • Scott Talbott, Senior Vice President of Government Affairs, Electronic Transactions Association ___________________________________ Overview Digital wallets are software applications that store payment or account details to facilitate electronic payments and transactions. Digital wallets have increasingly become part of our payments ecosystem, transforming how consumers make payments to merchants as well as with each other. Large technology companies such as Apple and Google have grown their payments offerings, and fintech companies such as PayPal (and its subsidiary Venmo), Block (formerly known as Square, and its subsidiary CashApp), and Zelle have become household names. However, digital wallets have raised important policy questions about the payments system, including the need for real-time payments, privacy, cybersecurity, consumer protection, and financial inclusion. In addition to being used for payments, digital wallets have also emerged in the digital assets space, offering ownership of, access to, and transactions with cryptocurrencies, including stablecoins, a subset of cryptocurrencies that are pegged to reserve assets. The Task Force on Financial Technology has previously explored consumer protection issues related to the rise of fintech products and services, including Buy Now Pay Later, Earned Wage Access, and Overdraft Avoidance. The Task Force has also examined developments in consumer data sharing and policy considerations related to Central Bank Digital Currencies(CBDCs). This hearing will examine trends in mobile banking and payments, the current landscape of digital wallets, and their impact on users. Recent Trends in Consumer Use of Digital Wallets Digital wallets store bank account information, payment information, and cash balances in smartphone-linked applications (apps). These apps require the use of at least one piece of internetconnected hardware. While some apps may only work with specific devices, others can be downloaded and accessed from any device, including a phone, computer, or other internet-enabled device. Most digital wallets in the U.S. use existing payment systems such as automated clearing house (ACH) and card networks, and are linked to consumer accounts at financial institutions. Digital wallets are used in numerous ways, including to make retail payments, enable peer-to peer (p2p) transfers between two users, store funds, or safeguard other relevant financial information. Retail specific digital wallets are offered by merchants, allowing individuals to store payment card information, upload funds to gift cards, or prefund a balance on an app.8 These wallets may also allow users to scan unique Quick Response (QR) codes at the point-of-sale (POS) check-out to initiate the transaction. General purpose mobile wallets provide much of the same functionality as retail specific wallets but are not limited to a specific merchant and can be used with multiple institutions. For example, consumers may use a wallet to make payments at a grocery store or to pay rent. The companies that issue general purpose wallets are typically regulated as money transmitters. Transfers of funds usually can only occur when users have same digital wallet apps, raising interoperability issues.11 Digital wallets are also increasingly used for cryptocurrency transactions. Digital asset wallets are computer software applications that track secret keys to digitally sign cryptocurrency transactions on distributed ledgers and store cryptocurrencies, including stablecoins, and other digital assets. These wallets can also store cryptocurrency-based credit cards, or allow users to purchase cryptocurrencies directly, with custodial wallets being offered by third parties such as cryptocurrency exchanges, and noncustodial wallets removing intermediaries, allowing users to have control of their wallet entirely. Further, cold-storage wallets are a type of hardware that allow... Hearing page: https://democrats-financialservices.h...