[author: Karen Ross]

The Federal Reserve Bank of Boston recently released a paper that examines how mobile payment technologies, chiefly NFC and cloud based technologies, address security of mobile payments at the point of sale. The paper distinguishes between a mobile wallet, digital wallet and hybrid wallet based on the location where consumer personal information is stored. After taking a closer look at NFC and cloud based models, the authors explore the advantages and disadvantages of Secure Element placement options as well as the security benefits and challenges to cloud-based mobile payments. QR codes and direct carrier billing models are also briefly discussed. The report concludes with a summary of consumer risks and mitigation opportunities for stakeholders to consider.