Verizon Wireless, AT&T and T-Mobile will invest more than $100 million in Isis, a mobile payment service, in order to compete with other similar products such as Google Wallet.
The amount of funding for Isis depends on how successful it is at attracting banks and merchants, according to Bloomberg.com. Additional investment on top of the $100 million may be required if Isis gains followers.
The carriers have teamed together to get a share of the mobile commerce market, which research firms are predicting will hit $670 billion in less than five years.
“Over the long haul, operators have to create new businesses that derive value from more than access,” Chetan Sharma, an independent wireless analyst in Issaquah, Washington, said, according to Bloomberg. “It’s a given that people are going to be transacting more over cell phones. It could open a potential new revenue stream for them.”
Isis team members also include members in the financial industry. The carriers have partnerships with Visa, MasterCard, Discover Financial Services and American Express.
The Isis carriers are feeling the heat from Google, which is already equipping merchant cash registers to accept its Google Wallet service, according to Bloomberg.com. In order to remain at the top of the race, Isis carrier owners may decide to increase the pace of deployment.