Understanding Risk Management in Emerging Retail Payments

[...]This article explores in several ways the structure andvocabulary of emerging payments system risks and theirmitigation. We begin by recounting several incidents of fraudand losses associated with emerging payment methods. Wethen describe an economic framework for understanding riskcontrol in retail payments. Next, we apply the framework to therisk experiences of three new payment types. Theseapproaches—both deductive and inductive—arecomplementary ways to understand risk and its mitigation inemerging payment methods. Finally, we discuss some generalobservations derived from integrating the economic conceptsand actual experiences, then offer conclusions.