June 9th news, according to foreign media reports, Visa has always hoped to establish its own mobile payment service outside of "Google Wallet" and the Isis mobile payment system, but this stance may change. It recently revealed that it is considering joining the "Google Wallet" and Isis mobile payment systems, and has held talks with relevant parties.
As the world's largest payment transaction operator, any decision by Visa could have a significant impact on the still developing mobile payment industry. Although Google has teamed up with Mastercard to jointly launch a mobile payment system aimed at providing comprehensive digital payment services for Android smartphone users, analysts say that if other large financial institutions like Visa do not join this system, the service will not be able to grow strong.
The New York-based startup Isis also hopes to create a mobile payment service based on smartphones, and Visa's support would bring it greater benefits. Although Isis has received support from three of the four major US mobile carriers - AT&T, T-Mobile, and Verizon Wireless (they jointly created the company in the fall of 2010), the Isis mobile payment system is not expected to be officially launched until 2012, and so far no financial institution has become its partner.
Visa naturally realizes its great influence on the mobile payment industry. Its spokesperson Elvira Swanson pointed out that the company has issued more than 1.8 billion credit cards and is used in over 200 countries around the world. Visa's transaction processing network can accurately locate the transaction location, enabling it to offer precisely targeted coupons and send them to customers' smartphones. The company is currently collaborating with Gap to test a service called "Gap Mobile4U." Swanson said that other merchants are also preparing to offer smartphone coupons to Visa cardholders.
Google has recently launched a new mobile coupon service called "Google Offers," which will directly compete with Visa's SMS coupon service. Swanson stated that Visa has not therefore excluded Google as a partner. She said: "We will continue to negotiate with all mobile payment service providers, and we have not said no to Google."
Swanson revealed that negotiations between Visa and Isis for cooperation in mobile payments are ongoing. Initially, Isis attempted to create a mobile payment system without the participation of Visa and Mastercard, but changed this plan a few weeks ago, expressing a welcome for collaboration with other companies. Swanson noted that this change by Isis indicates that every major competitor in the payment industry has "core expertise" related to the mobile payment market. Swanson said that Visa is currently "actively negotiating with Isis."
Complicating these negotiations is Visa's plan to launch its own mobile payment system. The company announced in May that it will launch a digital wallet based on its contactless technology - Visa payWave, which will include services such as payment, coupons, and smartphone transactions. Swanson said that this service has 14 partner banks and will be launched in the autumn of this year.
On June 9th, Visa announced two measures aimed at strengthening its mobile financial services. One measure is to establish a strategic alliance with Monitise, which will enable Visa and its partners to provide person-to-person payments and develop mobile marketing both domestically and internationally. The other is the acquisition of Fundamo, a company that provides mobile financial services technology for developing countries. The goal of these actions is to enhance Visa's global influence in mobile payments.
Therefore, even though Visa is seeking an ecosystem of equal partnership relationships, it may prefer "Google Wallet" and Isis to join its mobile payment system. Visa has already indicated that its mobile payment system will welcome all interested parties, including competitors like American Express and Mastercard. Swanson said: "If you want to expand mobile payments to all consumers, the system is open. Consumers can download the information of any credit card onto Visa's mobile payment system."