Article

Visa, MasterCard, Amex and Discover to join Isis

Isis announces big four credit card companies will participate in its mobile payment network.

July 18, 2011 by James Wester — Editor 1, Mobile Payments Today

Isis, the mobile payment joint venture between AT&T Mobility, T-Mobile USA and Verizon Wireless, announced all four major credit cards brands — Visa, MasterCard, Discover and American Express — will be participating in its mobile payment network. Isis said the relationships mean "merchants and consumers will have ubiquity and freedom of choice when it comes to payment network acceptance."

Isis was formed last November by the wireless rivals to facilitate mobile payments at the point of purchase using near field communications (NFC) technologies. Initially, the JV was intended to create a network separate from, and competitive to, the major credit card brands. Today’s announcement confirms recent stories that Isis was re-evaluating its business model and inviting the other payment brands to participate.

"Since the formation of Isis in November, we have been committed to building a mobile commerce platform that aligns and advances the interests of consumers, merchants and banks," said Isis CEO Michael Abbott in today's announcement, adding, "By working with the nation's payment networks — Visa, MasterCard, Discover and American Express — we significantly advance the vision of an open and secure platform that provides banks and merchants with a new and highly relevant way to connect with consumers."

For its part, Visa also sees the partnership as validation for its recently announced mobile payment strategy. In a post on the company's blog, Jim McCarthy, Visa's head of global products said, "Visa has added another element to its global strategy announced in May, giving consumers more ways and places to pay, whether using a card, a computer or a mobile device." He added, "We arrived at today's announcement because Isis recognized the benefits of embracing an open approach."

Other payment partners echoed a commitment to an open platform.

"We fully support an open commerce ecosystem which will drive the scale necessary for widespread adoption of mobile payments, providing consumers with exciting new possibilities for shopping and saving," said MasterCard Worldwide CEO Ajay Banga in the announcement.

For American Express, the Isis announcement means it has relationships with all four of the major wireless carriers. Just yesterday it announced that Sprint will be promoting Amex's new Serve payment platform through the Sprint Zone application market. 

"This relationship [with Isis] is another way for American Express to expand the digital experience in the social marketplace," said Bill Glenn, president of Global Merchant Services for American Express. "As the line between online and offline continues to blur, American Express is leveraging our digital closed loop to help connect our merchant network with our cardmembers in any environment."

In the announcement, Isis said its first rollouts in Salt Lake City and Austin, Texas, early in 2012 will include support from all four of its new payment partners.