With mobile payment services clamoring for space in the digital wallet domain movers and shakers are positioning themselves for growth opportunities presented in mobile commerce settings. Google Wallet has been live for a while but now a new player is entering the arena. ISIS is rounding the ninth month of it’s pilot program in Austin Texas, and Salt Lake City Utah using near field communications based mobile payments. AT&T Mobility, T-Mobile. and Verizon Wireless have partnered with ISIS and will be providing the electronic wallet services later this year.
ISIS’ pilot program began in October 2012 during which merchants in those markets that accept NFC based payments nearly quadrupled suggesting that both merchants and smartphone owners are ready for mobile contactless NFC payments. Their report suggests that more than 4,000 locations in those cities now accept the contactless payment options. Â Additionally Isis reports that mobile wallet payments were made on average 10 times per month among their users. Two thirds of those users opted into promotional and loyalty programs indicating that as an area for future growth. Further, more than 80% of their NFC transactions occur at retailers frequented by their customers daily. Restaurants, gas stations, coffee shops, and convenience stores topping the list.
When Isis first launched the pilot program only 9 handheld devices supported NFC technology, that number has increased to 35 making the nationwide launch a good bet adoption will be ready. That number of devices is expected to continue in growth. Coca-Cola, Jamba Juice, Foot Locker and Macy’s partnered with Isis during the pilot. Testing with Coca-Cola vending machines at 200 locations in Austin, Texas plans to initiate tens of thousands of vending machine once the nationwide launch is complete later this year. With nearly 20 million devices and millions more shipping each month adoption should be brisk.
Unlike Google Wallet, Isis has three of the main mobile carriers in its fold promising to be the largest push for mobile based NFC payments. Competition will get stiffer as Google announced recently that Google Wallet payments will soon come to gmail allowing for person-to-person payments. The big question is retail location adoption and that is shaping up as well with more than 1.3 million retail locations being outfitted with contactless paymenet terminals via near field communications.
August 1st, 2013 by Admin
