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Table of Contents

Lead Story

What ISOs can learn from consultants in today's complex payments arena

News

Industry Update

Will Isis launch shuttle in new era for NFC?

Cisero's amends counterclaim in Elavon case

Challenges ahead for EMV

Jones predicts ISOs will remain at payments hub

Features

Volunteerism bolsters local economy

It's all about increasing ROR

Research Rundown

Selling Prepaid

Prepaid in brief

AmEx goes big with Bluebird

Prepaid card dispensing ATM technology advances

Views

Whatever happened to the British motorcycle industry?

Brandes Elitch
CrossCheck Inc.

Can mPOS be a game-changer in India?

Sunil Rongala
MRL Posnet Private Ltd.

Education

Street SmartsSM:
Make large merchants your gravy

Jeff Fortney
Clearent LLC

Coping with PCI noncompliance fees

Adam Atlas
Attorney at Law

200 ways to get noticed - Part 1

Nancy Drexler
Acquired Marketing

The smart way to sell POS systems - Part 2

Joe Porco
Harbortouch

Company Profile

PayCube Inc.

New Products

A platform for smart businesses

Newtek Advantage
Newtek Business Services Inc.

Virtual POS system for QuickBooks

Instant Accept
NorseCorp

Inspiration

Functioning in today's challenging payments world

Departments

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

November 12, 2012  •  Issue 12:11:01

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Will Isis launch shuttle in new era for NFC?

JVL Ventures LLC's Isis rolled out its mobile wallet in two cities Oct. 22, 2012, and opinions differ regarding the significance of this development for the U.S. payments industry. There are nine Isis-enabled handsets available to consumers but, Jaymee Johnson, Head of Marketing at Isis Mobile Commerce, said, "By year end, as many as 20 [types of] Isis-ready handsets are expected to be in-market."

The Isis Mobile Wallet uses near field communication (NFC) to wirelessly transmit payment data stored on the phone to a POS terminal. A company spokesman said Isis demonstrates "an unprecedented level of support for NFC and consumer choice."

According to JVL, to make a payment using an Isis wallet, consumers will need to acquire an NFC-enabled phone manufactured by AT&T, T-Mobile or Verizon, along with a secure element SIM card; download the Isis Mobile Wallet application from the Google Play store; and put their credit card information into the wallet. Consumers also can opt to use the reloadable Isis Cash card that comes with an Isis wallet.

The company reported Isis will ultimately be available to all merchants, banks, payment networks and mobile carriers. It also noted that the Isis Mobile Wallet enjoys the support of local merchants in the Salt Lake City and Austin metropolitan areas, as well as that of national and regional retailers.

SCA says Isis will have impact

Smart Card Alliance Director Randy Vanderhoof believes the joint venture's control over the mobile handset market gives it an opportunity to win consumer adoption, while other mobile wallets, like the software and cloud-based wallet introduced by Google Inc., so far have not.

"This is significant because it is the biggest mobile NFC payments launch in U.S. history," Vanderhoof said. "It is likely going to set the standard for how mobile devices will use NFC. Isis will succeed where Google has not."

Vanderhoof believes Isis' investment in an open system, along with its support for multiple financial institutions and multiple options, will carry the day with consumers. "It is clear consumers expect choice," he stated, pointing out Isis already has three times more wallet-enabled handsets than Google Wallet. For consumers, though, Isis adoption is about more than payments, Vanderhoof noted. He said that in the near future, NFC technology will be used for multiple tasks, including security identification, government ID verification (including drivers licenses and Social Security numbers) and insurance information. Isis-enabled mobile phone adoption will also be spurred by features such as global positioning that add additional value for consumers and create a demand for higher-end mobile devices with more features and richer data plans, he said.

Some express skepticism

Paul Martaus, founder of the payment consulting firm Martaus & Associates, is skeptical about Isis' ability to obtain a critical mass of consumer adoption. A 30-year industry observer, Martaus believes a dramatic change to a system as large as the U.S. payments system typically must involve an organization - public or private - with the ability to impose a standard on the market.

In the United States, Visa's ability to impose the Europay/MasterCard/Visa global interoperability standard and the Payment Card Industry Data Security Standard are the closest examples of what Martaus described as fiat - the ability to decree.

Martaus said that without fiat, the mobile phone venture may rethink its approach to payments as it comes to better understand the realities and complexities of the payments business.

For additional news stories, please visit www.greensheet.com and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services