Mobile Platform: ISIS Recruits Its First Merchants
- ISIS announced the affiliation of its first merchant acceptors.
- This mobile payment dedicated joint venture was formed end 2010 by the three large US mobile operators: AT&T, T-Mobile and Verizon. ISIS targets the segment of instant transactions: transportation, fast-foods, cafés, grocery stores, car parks, etc.
- Barclaycard and debit card scheme Discover are in charge of processing the transactions and managing payment accounts. ISIS says it is open to collaborations with other universal card schemes and mobile operators, as well as with private-label retail cards and gift cards.
- American mobile operators are working on an increasing number of initiatives while regulatory added pressure compels the payment industry to create new business models. For instance, US mobile operator Sprint announced a third-party billing offer. This new online means of payment relies on collaborative work with start-up BilltoMobile. Earlier on, Sprint sold a mobile wallet. Banks are now very challenged.
- In addition, ISIS –US counterpart of French Buyster– targets the same retail sectors as NFC payment solutions providers. In fact, the traditional commerce does not lead the way as it already took advantage of the significant gains derived from the introduction of cards at their points of sales.
- Finally, it should be reminded that deployment of contactless solutions in various parts of the US was an opportunity for financial institutions to make a first step towards smartcards. The mobile payment market may become a second frontier to suppress magnetic stripe cards. American banking institutions would then avoid migration to contact EMV and related costs - which would have benefited to a sector dominated by European players: Ingenico, G&D, Oberthur, Gemalto, etc., as opposed to VeriFone-Hypercom.
See November 2010 Watch