US electronic payment association Nacha is proposing amending its rules to cater for an expected surge in mobile payments processed over the national ACH network.
The proposed rule change would expand the definition of Internet-Initiated Entries (WEB) to include ACH debits authorised and/or initiated via mobile networks.
Nacha says the changes would clarify the entry classifaction standard for mobile payment processing over the ACH network and provide a framework for basic risk management and security procedures.
While current mobile payment volume is low, industry analysts predict significant growth over the next five years as more consumers acquire smart phones and payment solution providers begin marketing more aggressively.
Insight Research Corporation estimates that 2.2 billion consumers will generate $124 billion in financial transactions by 2014. A more conservative estimate still predicts huge growth: Mercator Advisory Group estimates that payments from remote devices will grow from an estimated $389 million in 2009 to $8.6 billion in 2014.
In a statement, Nacha says: "Should mobile payments continue their rapid growth in the absence of rules and a serious security breach occurs, it might be considered a liability for Nacha and damage the reputation of the ACH Network."
Nacha has set an implementation date for the rule changes for 17 December.
"Because Nacha does not anticipate that this rules proposal will require major software changes, the industry should have sufficient time to prepare for compliance with the provisions of these proposed rules," the statement continues.