Wireless carriers team up on mobile payment network

Nov 18, 2010
People walk by a Verizon store in New York City. Three of the largest US wireless carriers announced on Wednesday they are teaming up to build a national network to make payments by mobile phones.

Three of the largest US wireless carriers announced on Wednesday they are teaming up to build a national network to make payments by mobile phones.

AT&T, T-Mobile and Verizon Wireless said they had formed a joint venture called "Isis" that aims to "fundamentally transform how people shop, pay and save."

They said the initial focus will be on building a network that uses mobile phones to make purchases and expect to introduce the service during the next 18 months.

"Our mobile commerce network, through relationships with merchants, will provide an enhanced, more convenient, more personalized shopping experience for consumers," Michael Abbott, chief executive of Isis, said in a statement.

"While mobile payments will be at the core of our offering, it is only the start," said Abbott, a veteran financial services executive formerly with GE Capital.

"We plan to create a mobile wallet that ultimately eliminates the need for consumers to carry cash, credit and debit cards, reward cards, coupons, tickets and transit passes," he said.

AT&T, T-Mobile and Verizon said they are working with the payment network of Discover Financial Services, which is currently accepted at more than seven million merchant locations, on the infrastructure for the joint venture.

Barclaycard US will be the first to offer mobile payment products, they said. "Moving forward, Isis will be available to all interested merchants, banks and mobile carriers," Abbott said.

Google chief executive Eric Schmidt showed off a new Google on Tuesday that incorporates the technology, making it a virtual wallet so people can "tap and pay."

The successor to the Internet firm's Nexus One smartphone is embedded with a near-field communication (NFC) chip for financial transactions, the same system Isis plans to use.

NFC technology uses short-range, high frequency wireless to enable the encrypted exchange of information between devices at a short distance.

"You will be able to take these mobile devices that will be able to do commerce," Schmidt said, eventually replacing credit cards.

The near-field chips store personal data that can be transmitted to readers, say at a shop checkout stand, by tapping a mobile handset on a pad.

Explore further: FCC to propose pay-for-priority Internet standards

add to favorites email to friend print save as pdf

Related Stories

Wave Your Mobile Phone To Pay

Sep 16, 2004

Consumers benefit from a convenient, fast and secure mobile payment experience Royal Philips Electronics and ViVOtech today announced a major initiative to deploy Philips' Near Field Communication (NFC) technology-based ...

Mobile payments catch on with banks, phone makers

Oct 01, 2010

Smart phones already enable you to snap photos and bank online. Now banks and credit card companies think it might make sense for your phone to take over the functions of credit and debit cards.

Google working on phone with built-in payment tool

Nov 16, 2010

Google Inc. is taking another stab at designing a game-changing mobile phone, this time by including a built-in payment system that could eventually enable the devices to replace credit cards.

Nokia plans to launch mobile 'banking'

Aug 26, 2009

Nokia, the world's leading mobile phone maker, will launch a service enabling people to make financial transactions with their cell phones, the Finnish telecoms giant said Wednesday.

Recommended for you

Internet TV case: US justices skeptical, concerned

Apr 23, 2014

Grappling with fast-changing technology, U.S. Supreme Court justices debated Tuesday whether they can protect the copyrights of TV broadcasters to the shows they send out without strangling innovations in ...

Hundreds in Mexico protest telecommunications law

Apr 23, 2014

Hundreds of students and activists marched in Mexico's capital Tuesday to protest a telecommunications law being debated by the Senate that they say will allow the government to arbitrarily censor Internet content.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

gwrede
not rated yet Nov 18, 2010
Cyber criminals must be literally drooling over this news. And there should be no problem getting venture capital from the mob to finance some serious applications for stealing people blind.

More news stories

Genetic code of the deadly tsetse fly unraveled

Mining the genome of the disease-transmitting tsetse fly, researchers have revealed the genetic adaptions that allow it to have such unique biology and transmit disease to both humans and animals.