In Mobile Payments, Credit Card Companies Might be a Third Wheel

Author:

Meghan Keane

Source:

If there's one thing major mobile carriers don't like to do, it's work together. But that appears to be what they're doing in the mobile payment space. Considering how tight the market is, that's a move credit card companies might not be too happy about. Because while credit card companies may need carriers to get into mobile payments, they may also soon learn those same carriers don't need them.
 
Verizon, T-Mobile and AT&T are entering into an agreement to let customers pay for products with their smartphones.
 
Interestingly, they are not working with Visa, MasterCard, or American Express on this venture. They're not working alone either, but instead partnering with Discover and Barclays on this venture. But it's interesting that they are going with a smaller credit card company and a non-US based bank.
 
Discover is the fourth-ranked payment processer in the U.S., and this is sure to be a coup for the company. In fact, contactless mobile payments could change the whole credit card market. An industry consultant, Richard Crone of San Carlos of California-based Crone Consulting LLC, tells Bloomberg ....