ISIS Finally Launches, New Google Wallet Coming Soon

Carrier backed US mobile payments initiative ISIS is finally live in two cities (Austin and Salt Lake City) this week after several delays. ISIS relies on near-field communications (NFC) and is very similar to rival Google Wallet, which also uses NFC technology. Like Google Wallet, ISIS will work at merchant locations with NFC-enabled POS terminals. There are approximately 300,000 such terminals in the US. 

Currently there are nine phones across T-Mobile, AT&T and Verizon that are compatible with ISIS. As many as 20 are expected by year end.

Google Wallet, which has been in the market for a little over a year, has seen very low levels of consumer adoption and usage. That's partly because there are relatively few available compatible handsets. Carriers have also not been entirely cooperative. Verizon in particular has blocked Google Wallet on its handsets, theoretically because of security concerns. However, ISIS is a direct competitor and were Google Wallet to succeed ISIS might not. As it is ISIS is a very long shot for the carriers.

Beyond this there is limited consumer awareness and interest in the US in NFC-enabled smartphone payments. 

Recognizing that it must do something to broaden the appeal and potential adoption of Google Wallet, the company is preparing to relaunch it soon. The Google Wallet site says, "The next version of Google Wallet, coming soon. Request an invite."

As part of the invite request process the Google Wallet site asks whether users have an iPhone, Android or "other." As widely known, the iPhone is not currently NFC compatible. All this suggests that Google is partly moving away from NFC or, perhaps more accurately, broadening Wallet's capabilities so that many more people can use it without NFC handsets.

Currently there is no leader in mobile payments in the US market. However, there are early indications that Apple's Passbook is seeing some traction among iPhone users. While Passbook supports stored value cards it right now doesn't fully support mobile payments.