ISIS Retrenches Efforts in Mobile Payments

On May 4, 2011, news articles indicated that the JV that was started by AT&T (NYSE:T), Verizon (NYSE:VZ), and T-Mobile will be scaling back their efforts around mobile payments with a less aggressive approach to the market. This should not be a surprise given customer behaviors and market dynamics.

ISIS (NASDAQ:ISIS)’s strategy to date has not been well-defined publicly. Many believed that the three MNOs were teaming up to create a new mobile payments rail, but their announcements with Discover and Barclays (NYSE:BCS) suggested that they would be riding the “4th” rail in the US market and teaming with Barclays for issuance. While this approach made sense for trailing Discover to try to gain some market share, the question remained how the least adopted rail by merchants would overcome adoption hurdles it has had in the past and what additional value the MNOs would bring to the table… both for the merchants and the consumers.

Given all this, today’s announcement of the “scale back” to be simply a mobile wallet that holds existing cards of the consumers is not a surprise. However, the question still remains what additional value add ISIS will bring to merchants and consumers. Meanwhile, other very disruptive partnerships are being put into place. It will not be surprising if new announcements are made in the very near future that could create a further setback for the ISIS efforts.

-Menekse Gencer
Former Director of Mobile Payments, PayPal
CEO, mPay Connect – a mobile payments consulting service
http://www.mpayconnect.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s