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Is Isis Mobile Payment Alliance More Like Icarus? Bad Assumptions Could Cause It To Fireball

Written by Nick Holland
March 8th, 2011
A recent product announcement in France may have effectively torpedoed today's mobile payment business model. As a result, it may require some hefty strategic rethinking by retail IT execs who, until now, have assumed that they would own the relationship with the customer.

The Inside Secure OpenNFC standard can allow third parties to access NFC capabilities on phones, effectively bypassing mobile-operator-led initiatives such as Isis. Asks Columnist Nick Holland: Is it too late for the Isis consortium to change direction and work in conjunction with existing card networks such as Visa and MasterCard?

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Posted in E-Commerce, In-Store, Mobile/Wireless/Contactless, Payment Systems, Premium Content, Security/Fraud
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4 Comments | Read Is Isis Mobile Payment Alliance More Like Icarus? Bad Assumptions Could Cause It To Fireball

  1. Greg Coogan Says:
    March 8th, 2011 at 9:48 am

    Hi Nick,

    Very insightful, and a real eye opener. If Isis is going to be successful, it will have to be because it delivers value to both retailers and customers. And it looks like the competition may be coming from many new directions.

    Greg

  2. Nick Says:
    March 8th, 2011 at 11:54 am

    Exactly, Greg. It needs to be more than just a payments vehicle since that alone is hardly exciting for consumers or merchants. Isis, to their credit, is working very hard on the customer engagement component with coupons and promotions. This could be where they make some headway. They need to be fast though – the ecosystem is evolving very quickly…

  3. John Says:
    March 9th, 2011 at 8:14 pm

    Nick,

    You mentioned SIM based solutions a couple of times in the article. Can Isis really pursue a SIM based solution considering Verizon phones are CDMA based and do not use SIM cards?

  4. Nick Says:
    March 9th, 2011 at 9:11 pm

    Good point John. Unlike AT&T and T-Mobile, the Verizon NFC devices will not have a SIM as the SE, but will likely have an embedded SE placed in the handsets at an OEM level. The common factor between all three MNOs, regardless of CDMA or GSM network, is the intended total control of a single SE within their handsets. For further reading, check out this GSMA article…

    http://www.mobilemoneyexchange.org/Discussions/smart-cards-need-smart-phones

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