AT&T, Verizon Wireless and T-Mobile USA are modifying the business model of their mobile payments joint venture Isis, Wall Street Journal writes citing people familiar with the matter. Initially, Isis aspired to set up its own payments network and collect fees on every transaction, with customers maintaining accounts directly with their wireless carrier, rather than with a credit card company. Now, the group has adopted the less ambitious goal of setting up a 'mobile wallet' that can store and exchange the account information on a users' existing Visa, MasterCard or other card, people familiar with the matter said. The carriers are scrambling to find other ways to make money from the transactions. To get as many users as possible, the carriers are now in talks with Visa and MasterCard to have them participate in the system they will embed in mobile phones, people familiar with the matter said. Teaming up with major card companies was needed to avoid falling further behind in the race to establish a standard way for letting consumers pay for products with their mobile phones, the people said.
