AT&T, T-Mobile, Verizon Working Together On ISIS NFC Mobile Wallet System

Sensing perhaps that working by themselves on such an important matter might be inadvisable, AT&T, T-Mobile, and Verizon have announced a joint effort, called ISIS, intended to be a virtual wallet and mobile payment system. There are very few details, but the stated goal of replacing “cash, credit and debit cards, reward cards, coupons, tickets and transit passes” is certainly bold enough. I mean, bold if you don’t think about all the countries that have had systems like this for years.
Yes, although we’ll be playing catch-up to Japan and South Korea, among others, with luck the major carriers will be able to provide a system that’s broader and more universal. They’ll have to parley with credit card companies, small businesses, and government on various levels, though, so I doubt ISIS will be arriving in a hurry.
One thing that’s not clear is what ISIS stands for. I’m going to say nothing, since they have it as Isis elsewhere. That’s going to be my convention from now on, since I believe there is a special place in hell reserved for those who abuse capital letters.
The ascendancy of near-field communications is likely going to revolutionize in-person commerce whether Isis gets off the ground or not. And while the idea of all my shopping preferences, memberships, credit card purchases, and so on being on the same device that knows where I am and who I know is slightly disconcerting, I’m sure they’ll find some way of making it palatable to geezers like me. Convenience is an easy sell, and NFC is all convenience.
The destabilization of the current mode of authorization and tracking will be weird for a while, though. And I expect a certain amount of bugs, though if they’re smart, the carriers will work hard at keeping this thing dead simple. If they get greedy and insist on their own app or interface as well as this new protocol, things will get ugly. But if they just lay the foundation and let mobile payment be as secure and friendly as the user chooses to make it… well, relying on the user isn’t always the best idea.
Although it’s supposed to launch in the next 18 months (so mid-2012, maybe), I have a feeling that even then it’s going to be a pretty limited roll-out. The Pho place I go to on Broadway? Probably not going to get this system until they’re legally required to. They were cash-only until like May. So don’t forget that the world has to change along with the consumers. Sure, you’ll be able to use Isis at Best Buy and T-Mobile stores right off the bat (if your card or bank has been wooed by then) but replacing the wallet is going to take a long time. A decade? More?
In the meantime, they’re working with Discover and Barclays. No word on the other big guys, and no hints as to whether Isis might be going up against a similar system backed by the banks and credit industry. Seems likely. There’s a hell of a lot of money about to be made.