Credit card and other large companies are diving into mobile and digital payment technologies head first, forming aggressive strategies with purchasing and partnerships in order to ensure their space at the top of the game.
Both American Express and MasterCard have been making deals and have been choosing the technologies that they believe will lead the way for mobile payments.
Visa has also made as series of significant moves recently, which include the assumption of an advisory position in Square (a disruptive startup), the $110 million acquisition of Fundamo (a mobile payments business), and the $190 million purchase of PlaySpan (a payments platform).
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Bill Gajda, the global head of mobile product at Visa, explained that there are three primary elements to the mobile payments strategy with that credit card giant. Among them is NFC – an area where MasterCard has also placed a significant amount of attention – which allows a smartphone user to make a purchase at a physical store using the mobile device.
Nexus S and other Android phones are already being manufactured to include an NFC chip for use with Google Wallet. Visa is also now a part of the ISIS network, which is a joint networking mobile payment venture created by Verizon, T-Mobile, and AT&T. This network will soon be launching in several markets such as Texas and Utah.
Gajda also went on to say that Visa is licensing the PayWave mobile payments application in order to integrate it with ISIS wallet. It will also be adding additional methods of integrating NFC within the mobile payment structure already established by the company.