Sunday, July 31, 2011

Verizon Inks Mobile Payment Deal with American Expres

Verizon Wireless will integrate American Express' new "Serve" digital payment and commerce platform on many of its mobile phones and tablets. Serve simplifies the online checkout experience by authenticating a mobile number, then allowing a customer to make a purchase on-screen.

Verizon Wireless customers will be need to establish Serve accounts that will enable them to make payments and redeem offers for goods and services directly from their mobile phones and tablets with just a few clicks using Serve. Merchants who accept Serve mobile payments will enjoy a streamlined option for processing and settlement. The Serve card is currently accepted by the millions of merchants in the United States who accept American Express.

The companies also agreed to collaborate to source, distribute and simplify redemption of online and mobile offers with participating merchants through the use of the Serve account.

  • In June, Verizon Wireless announced plans for a new service that will allow customers to make online purchases from their smartphones, tablets and PCs using numerous payment methods, including charging purchases to their monthly wireless statements or using traditional payment methods through financial institution partners. The service will be powered by Payfone. Payfone is backed by American Express, Verizon Investments, Rogers Ventures, BlackBerry Partners Fund, Opus Capital, and RRE Ventures.
  • In November 2010, AT&T Mobility, T-Mobile USA and Verizon Wireless announced the foundation of Isis -- a national mobile commerce network that aims to fundamentally transform how people shop, pay and save. The venture will leverage near-field communication (NFC) technology to enable point-of-sale transactions via mobile phone. Commercial launch in key geographic markets is expected over the next 18 months.

    Together, these operators provide wireless services to more than 200 million U.S. consumers.

    "While mobile payments will be at the core of our offering, it is only the start. We plan to create a mobile wallet that ultimately eliminates the need for consumers to carry cash, credit and debit cards, reward cards, coupons, tickets and transit passes," stated Michael Abbott, Chief Executive Officer of Isis.

    Initial financial partners include Discover, which operates a payment network currently accepted at more than seven million merchant locations nationwide, and Barclays PLC, which is expected to be the first issuer on the network.

    The companies said the Isis mobile commerce network will be available to all merchants, banks, and mobile carriers.