Sprint Nextel Corp. is planning to launch its own contactless mobile payments service ahead of rival m-payments provider Isis, according to Bloomberg.
Sprint, which used to be a part of Isis before splitting to pursue its own m-payments project, is aiming for a launch later this year, whereas Isis, the joint venture formed by AT&T, T-Mobile and Verizon, will not be available to consumers until the first half of 2012.
Sprint is currently working with payment networks and handset makers to develop the system, which will rely on NFC technology to enabled consumers to tap and pay at the point of sale with their mobile phones, says Kevin McGinnis, Sprint’s VP of product platforms.
“We intend to make this an open solution where consumers can use their phone in a variety of physical locations,” added McGinnis. “Because we’re allowing other brands and other institutions to participate, they can also tell their consumers that this is available on Sprint.”
Sprint is also planning to gain revenue from its service in a different way, reports Bloomberg. Rather than take a percentage of each transaction like Isis, Sprint is looking to cash in on coupon sales and targeted advertising sent directly to its customers’ handsets – a tactic McGinnis says will prevent “bill shock” and distinguish Sprint from Isis and other competitors.
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