None of the US wireless firms entering into an
alleged partnership to run a contactless mobile payments venture
were willing to comment on “rumour or speculation” in the
press.

According to a Bloomberg report, AT&T,
Verizon Wireless and T-Mobile have teamed up to test mobile
contactless technology at shops in Atlanta and three other cities
in the US. It is also expected they will use Discover Financial
Services to process payments and Barclays to manage accounts.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

AT&T declined to comment and Jeffrey
Nelson, who works in media relations at Verizon told EPI
that he refused to comment on “rumour and speculation”, a phrase
echoed by a spokesperson at T-Mobile.

“T-Mobile does not comment on rumour or
speculation.  We’re always developing new, exciting and
convenient features to offer our customers, and mobile payment has
flourished in other areas around the globe.  But we have
nothing to announce at this time.”

Three people with knowledge of the plan, who
were cited as Bloomberg’s source, revealed AT&T and Verizon
Wireless have equal stakes in the project, with T-Mobile USA
holding a smaller share.

Commenting on the mobile contactless plans,
financial analysts at Keefe, Bruyette and Woods, Sanjay Sakhrani
and Steven Kwok, have voiced concerns over costs and security
issues that may deter merchants and consumers from getting on
board.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We think there are many hurdles before one
can make the assumption that this is a game-changer,” said Sakhrani
and Kwok.

“We need more information to get a better
sense on whether or not this venture has the potential to do
anything meaningful in the near-term at least to disintermediate
MasterCard and Visa.”