Canada    FinTech Guide    Chapter 1    United States of America

1. Payment Services / Mobile Payment
United States of America  United States of America

Questions about the social and political climate in the US are challenging in normal times, and particularly so in 2017. In general, the American culture is favorably inclined to experiment with new technologies.

Legal Affairs

In the United States, payment processors may be required to be regulated as “money transmitters”, although some exceptions and exclusions may be available. Costs for evaluating licensure requirements and obtaining licensure vary depending on the nature of the business.

Economic Conditions

The economic competition is considered high.


There are a number of non-governmental agencies (such as the payment card industry) which have established their own standards for data protections and privacy. All of these standards may be applicable to payment processors and need to be evaluated on a case-by-case basis.

In addition, state regulations also exist and, where not preempted by federal regulation, also need to be evaluated from a compliance perspective.

Contributing Authors

Carlsmith Ball LLP

Gerald A. Sumida
Honolulu, Hawaii, USA

Carrington, Coleman, Sloman & Blumenthal LLP

Bret Madole
Dallas, Texas, USA

Charles Jordan
Dallas, Texas, USA

Duane Morris LLP

Hope P. Krebs
Philadelphia, Pennsylvania, USA

Thomas Schmuhl
Philadelphia, Pennsylvania, USA

Frost Brown Todd LLC

Joseph Julnes Dehner
Cincinnati, Ohio, USA

Gray Plant Mooty

Christopher Carlisle
Minneapolis, Minnesota, USA

Gaylen Knack
Minneapolis, Minnesota, USA

Holland & Knight LLP

Jorge Hernandez-Toraño
Miami, Florida, USA

Miller Nash Graham & Dunn LLP

Chris Helmer
Portland, Oregon, USA

Kimball H. Ferris
Portland, Oregon, USA

Polsinelli PC

Anthony Nasharr
Chicago, Illinois, USA

Richard Levin
Denver, Colorado, USA

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018