Three of the top four U.S. mobile service providers — Verizon Wireless, AT&T and T-Mobile USA — are working together to build a network that would let consumers pay for goods with their phones.
Their Isis joint venture, which was formally announced on Tuesday, plans to take market share from dominant payment networks Visa and MasterCard, which currently process most U.S. credit and debit card payments. Sources told Reuters on Monday that an announcement was imminent.
Isis said the network would use Discover Financial Services’ national payment network at its roughly 7 million U.S. merchant partners and that Barclaycard U.S., a unit of Barclays Plc is expected to be the first lender on the network to offer mobile payment products.
“We’re a competitive alternative” to Visa and MasterCard, Isis CEO Michael Abbott told Reuters in an interview on Tuesday. Abbott, a former GE Capital credit cards executive, was named chief executive of the venture…
The idea behind mobile payments is for consumers to be able to wave their phone at a machine to pay for items such as train tickets, potentially eliminating the need to carry a wallet…
The venture is a coup for Discover, the fourth-place U.S. processing network, which is trying to take market share after long lagging Visa, MasterCard and American Express.
This already rocks in Japan. We all know the single most effective way for this to catch on in the United States. It’s ging to have to save someone some money.
Don’t expect to see this in anything smaller than a big box store for a number of months.