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The security and privacy of mobile payments was discussed during a House Energy and Commerce subcommittee hearing Tuesday featuring representatives from PayPal, Samsung Pay and the Merchant Customer Exchange.

The hearing, held by the Commerce, Manufacturing and Trade subcommittee, was the latest in a series reviewing various technologies affecting the lives of Americans. Tuesday's hearing looked at the mobile payments landscape as more Americans are using their smartphones as payment options.

Much of the discussion during the hearing focused on the security and privacy of using a mobile phone to make payments. Ranking Member Jan Schakowsky, D-Ill., was concerned about the privacy aspect and what information is collected when a consumer pays with his or her phone. Rep. Marsha Blackburn, R-Tenn., expressed similar concerns. Witnesses said merchants are provided with only a consumer's name and email addresses and, in some cases, a physical address, rather than a traditional card transaction where payment information can be stored in a merchant's system.

PayPal Vice President for Global Payments Policy John Muller said PayPal encrypts the rest of a consumer's information before sending a payment to a merchant.

Several members of the committee stated their hope that mobile technology will provide an opportunity for underbanked consumers to access financial services.

Also discussed during Tuesday's hearing was how mobile payments can help small businesses and entrepreneurs.

"Mobile changes everything," said Samsung Pay Chief Commercial Officer Sang Ahn, adding that the technology is "not tied down to time and place" and could prove very beneficial to new businesses.