WASHINGTON, D.C. – Yesterday, the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade held a hearing titled, “The Disrupter Series: Mobile Payments,” which looked at whether mobile payment technologies have “disrupted” the traditional payments landscape. In particular, policymakers were very interested in learning about how mobile technologies enhance security in the payments space and the degree to which mobile technology has made it possible for the underbanked and small businesses to access the payments market.

Throughout the hearing, policymakers applauded the many different innovations that have thrived in the mobile payments space and peppered the four witnesses—John Muller, vice president for global payments policy at PayPal; Sang W. Ahn, chief commercial officer for U.S. Samsung Pay; Jessica Deckinger, chief marketing officer for the Merchant Customer Exchange; and Professor Sarah Jane Hughes, University scholar and fellow in commercial law at the Indiana University Maurer School of Law—with questions.

Democrats focused their questions on privacy and other consumer protections in the mobile payments space, while Republicans asked about security innovation. Chairman Michael Burgess (R-TX) wondered how payments innovators would be able to “add to security” in a time when data is increasingly at risk from thieves. Representative Marsha Blackburn (R-TN) probed Deckinger regarding how MCX had addressed a recent security breach. Several other members asked the witnesses to explain how multi-factor authentication and tokenization technologies work and how those technologies enhance security.

Ranking Member Jan Schakowsky (IL), full Committee Ranking Member Frank Pallone (NJ), and Representative Yvette Clarke (NY) were the most active Democratic questioners on privacy and consumer protection. Lawmakers from both parties quizzed the witnesses on how innovators will be able to enhance mobile technology adoption in the U.S. and abroad.

This hearing was the latest in the Committee’s “Disrupter” series of hearings.  Each of these hearings examines different technologies and the extent to which those technologies are “redefining lives” and “improving economic conditions.” Previously, the Committee held hearings on drones and the sharing economy.

NACS filed a statement with the Committee discussing the obstacles to innovation in the mobile payments space.