Image via WikipediaWall Street Journal has now announced that the alliance of all main U.S. wireless carriers including AT&T Inc., Verizon Wireless and T-Mobile USA, is no longer gearing up to form a separate new network for payments method for transactions made by their customers through the cellphones. WSJ quotes that the hindrance in the job is actually because it is too easier said than done and requires a lot of worthy time to actually create a new separate network for payment, two very reliable people related to the project explained.
This previously announced joint business enterprise was called as Isis, which was originally scheduled in a way to take direct hold of the market share, which the telecom industry is providing to the Visa Inc and MasterCard Inc. All the main wireless carriers were collaboratively going to set up their own directly controlled payments network, which would have been made been customized for collecting fees each transaction of their customers’ mobile phones.
It was informed by the Deutsche Telekom AG that all the parties in the alliance; T-Mobile USA, AT&T and Verizon Wireless have more or less dropped the idea and are very less ambitious towards the achievement of their own set goals than they were before. It is being declared that as a substitute, meanwhile every company will rather set up a "mobile wallet," which will be useful for customers to store and exchange their personal account information using their own existing Visa/MasterCard card.
So rather than competing with, currently the carriers are negotiating the terms with Visa and MasterCard for having to get into partnership with them for this newly proposed system, which they intend to embed in the upcoming phones. Furthermore WSJ elaborated that this effort, is in turn aimed to get as many users as possible, for switching to this new system.
The previous announcement, back until November, of Isis claimed that the network is going to use Discover Financial Services' national payment network for the estimated 7 million U.S. merchant. Moreover, it was also declared that Barclaycard U.S., a part of Barclays Plc was also rumored to be one of the first lenders on that network which would have offered easy mobile payment products. According to a spokesperson, Isis is still an on-going project as they haven’t yet finished their partnership with Discover yet, however they will from now onwards also consider new partnerships too. He declined to comment on future partnerships, the WSJ said.
Other sources also reported by WSJ, said that the support of today’s major card companies was very necessary in order to secure the carrier’s business and the companies were not yet ready to risk falling further behind. Temporarily they will establish the standard way of allowing the consumers to pay for services through cellphones.
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