The Financial Technology Association (FTA) has submitted a letter opposing New York Senate Bill 5500 and Assembly Bill 5730, which address peer-to-peer (P2P) mobile payment service security.
While supportive of efforts to protect consumers, FTA opposes the legislation unless amended, citing the following concerns:
- The Electronic Fund Transfer Act (EFTA) and Regulation E already protect users from unauthorized transactions. FTA members also dedicate significant resources to fraud prevention and response.
- The bill’s requirements are overly prescriptive and may hinder providers’ ability to adapt to emerging scams and adopt evolving best practices.
- New York’s Department of Financial Services already requires multi-factor authentication for P2P providers. Mandating specific authentication methods, like knowledge-based factors, may conflict with more secure, modern cybersecurity standards.
- Increased friction in the user experience could drive consumers toward alternative products not covered by the bill.
FTA remains committed to working with lawmakers to develop targeted, effective solutions that enhance security while supporting innovation.
Read the full letter here.