ISIS is reportedly planning to spend big to compete with Google Wallet in mobile payments. Will $100 million help the cause in a market consumers haven't fully embraced.
With summer days dwindling, Google (NASDAQ:GOOG) has less
than two weeks to make good on its pledge to launch its Google Wallet mobile
is a mobile application
service that will let owners of Sprint's (NYSE:S) Samsung Nexus S 4G
smartphones use their phone as a wallet at some 20 retailers and restaurants.
Users tap their phones to a point-of-sale system made to
pay for goods. Citi, MasterCard and First Data are enabling payments for Google
Wallet, which leverages near field communication (NFC) to enable the
smartphones and point-of-sale terminals to process purchase transactions.
The company aims to launch the service this
summer in New York City and San Francisco. Wallet hasn't launched yet, and
there is no sign that it is coming with a little over two weeks left in the
"Our hope is to make an announcement in the next few
weeks but don't have anything set yet," a Google spokesperson told eWEEK
earlier this month.
ISIS, the mobile payment group backed by Verizon Wireless
(NYSE:VZW), AT&T (NYSE:T) and T-Mobile, apparently isn't taking any
chances. Bloomberg said the carrier group
, which unveiled its own tap-and-pay effort in July, plans to invest $100 million to
build out its mobile payment plans to challenge Wallet
An ISIS spokesperson declined comment, referring all questions
to the carriers themselves. A Verizon spokesperson Jeffrey Nelson told eWEEK: "We're not commenting on this rumor."
Bloomberg said the $100 million infusion in ISIS would go
toward securing more banks and merchants. What's interesting about this
is, on paper, ISIS' deck of cards has got Google Wallet's deck soundly
ISIS' access points for mobile payments are far superior.
Google has only secured Sprint and its Nexus S 4G phone for the NFC-based
service. The carriers will be able to offer ISIS across multiple NFC-based
Android 2.3 "Gingerbread" handsets.