Exploring the Legal Frameworks for Mobile Payments and Digital Wallets: Security and Privacy Considerations

Abstract

This study explores the legal frameworks governing mobile payments and digital wallets, focusing on security and privacy considerations. The primary objective is to qualitatively analyze how current regulations and legal standards address the unique challenges associated with the widespread adoption of mobile payment systems and digital wallets. The research employs a qualitative literature review methodology, synthesizing findings from academic articles, legal texts, regulatory documents, and case studies to provide a comprehensive understanding of the legal landscape and its implications for security and privacy.

The literature review methodology involves systematically collecting and analyzing relevant scholarly sources that address the regulation of mobile payments and digital wallets. The study categorizes the literature into key themes, such as the effectiveness of existing legal frameworks, the specific security and privacy risks associated with mobile payment technologies, and the role of regulatory bodies in mitigating these risks. The thematic analysis identifies common patterns and emerging trends in the regulation of digital financial transactions.

The findings reveal that while existing legal frameworks provide a foundational level of security and privacy protection for mobile payments and digital wallets, they often struggle to keep pace with rapid technological advancements and the evolving threat landscape. Key issues include the adequacy of authentication measures, the protection of sensitive financial data, and the management of cybersecurity risks. Case studies highlight instances where regulatory gaps have led to security breaches and privacy violations, underscoring the need for more robust and adaptive legal measures.