Isis Partners with Major Credit Card Companies on Mobile Payment Platform


Isis, the mobile payment joint venture established by AT&T Mobility, Verizon and T-Mobile, claimed a major victory on Tuesday by inking agreements with Visa, MasterCard, Discover and American Express.

The consortium has been working on developing “mobile wallet” software that allows smartphone owners to make point-of-sale purchases by simply waving their device over scanners. Isis-enabled mobile devices are set to be introduced in select locations in early 2012, with more widespread launches to follow.

Isis desperately needed to partner with the four major credit card companies to have the opportunity to flourish in the highly competitive e-wallet market. Major players like Google, PayPal and Amazon have either launched or are planning to launch similar initiatives.

The technology, known as near-field communications, is expected to be a dominant force in the future of the payment industry. Research firm Gartner recently expects the market for mobile payments to increase to more than $1.1 trillion by 2014, up seven fold from current numbers.

Meanwhile, PayPal expects to process $4 billion worth of mobile payments this year, even though the technology is far from ubiquitous, PC World reports.

Tuesday's agreement comes just two months after Isis scrapped a highly ambitious plan to run the payment system on its own, cutting out the four credit card companies entirely. Verizon, AT&T and T-Mobile apparently scaled back the plan because it would be too difficult and time consuming, the Wall Street Journal reported in May, citing two sources close to the situation.

“The carriers had to include MasterCard and Visa,” Drew Sievers, cofounder and chief executive of mFoundry, a provider of mobile banking technology, told the news source. “Not including the 800 pound gorillas of the industry would make it very hard to succeed.”

In addition to providing mobile payment options, Isis plans on using NFC technology to allow users to redeem coupons and store loyalty credits with just a swipe of their phone. This will provide merchants with additional advertising opportunities and could adversely affect companies in the thriving daily deal and electronic coupon industries.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.

Beecher Tuttle is a TechZone360 contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More