ISIS the new Mobile Commerce JV … What next

This goes back to november 2010 when the announced ISIS.

 

Over the last week many of us have read and attempted to understand what are the goals and objectives of Isis and its owners AT&T, Verizon and T-Mobile.

Visa reacted, pundits speak of ISIS becoming a new payment brand/system and Google, Ericson, Apple and RIM all are embracing NFC and speaking to inclusion in the mobile phone.

To include all these links would take more space than appropriate.  A simple Google search with key words like ISIS Mobile Commerce etc. will quickly get you to more than you could digest.

In the Isis press release they speak of creating the Mobile Wallet and talk about offering their services to merchants, Banks and carriers.  Yet in what capacity?  Clearly the relationship between the citizen and merchant today belong to the merchant, carriers and banks.  So one wonders if ISIS will interact directly or if the Banks, merchants and Carriers will be the channel to market for the underlining services ISIS offers. 
 
 Of significance is Bill Gajda’s, Visa’s head of mobile products, statements which does not identify Isis as a threat or a competitor.  He speaks to collaboration.  It will be interesting to see what MasterCard will say. 
 
As I thought about what ISIS wants to be, I was drawn to reread a paper produced by GSMA and ECP Global Switch Mobile Association and European Council for Payments.  That paper is titled.
 
 Trusted Service Manager Service Management Requirements and Specifications

Doc: EPC 220-08, Version 1.0 January 2010

What occurred to me is that  Isis could set itself up as a “Trusted Service Manager” TSM, taking on a trust function supporting Issuers and Mobile Network Operators MNO and why not the merchant; who all all talk about the capabilities of the mobile phone and will want to dematerialize their cards and install their certificates, data and applets within the context of a mobile wallet.   ISIS  can then derive their revenue from fees assocaited with “Trust” and assuring the identity of the owner of the phone,.

I do not see ISIS becoming a new means of payment.  I see them becoming an enabler that helps build the business case to drive the necessary investments merchants and carriers must make to assure the consumer that they can move all their cards into their mobile phone.  Mobile Commerce is the key words that leads me to think about coupons, loyalty, rewards, push marketing …

As we all know contactless and NFC are not getting the traction one might have expected.  Mobile loyalty, Mobile commerce, services branded as a means of enhancing the customer experience those I do imagine will excite merchants and consuemrs to demand NFC capabiliites.  Imagine walking into a store and getting coupons and discounts as you tap and add to your shopping cart.  Clearly merchants appreciate that they can drive consumers to buy more it they can excite them.

So what is ISIS truly going to do, compete, collaborate or enable?
 
 

Leave a Reply

You must be logged in to post a comment.