Isis and C-SAM could spell more trouble for Google Wallet

Isis selects C-SAM to provide NFC mobile wallet management SDK which could give Google Wallet a run for its mobile money

Isis has selected C-SAM to provide the joint venture with its mobile wallet management platform and comprehensive SDK. C-SAM offers a comprehensive set of services that enables NFC functionality via an SDK that includes full wallet management. In fact, the offering is so robust it would be comparable to Margento’s offerings in terms of sheer  amount of services that are supported but with one all important addition, which is that C-SAM supports NFC. Isis will have access to C-SAM’s highly scalable mobile wallet management platform and comprehensive SDK bundled with over twenty-five reference services.

“C-SAM’s vision has been to recreate a leather wallet metaphor on mobile phones,” said Sam Pitroda, Chairman and Founder of C-SAM. “We are excited about the agreement with Isis and confident that our mobile wallet will provide additional convenience, flexibility and security to Isis’ customers.”

C-SAM capabilities that Isis could benefit from

Isis is likely to employ many of the services offered by C-SAM which will give the joint venture between AT&T Mobility, T-Mobile USA and Verizon Wireless a significant portfolio of services that will allow it to compete with rivals like Google Wallet.

“We have incorporated learnings over the years from diverse markets and deployments to build a highly scalable mobile wallet management platform, supported by a comprehensive SDK,” said Felix Marx, CEO of C-SAM. “C-SAM’s platform and SDK will enable Isis and their partners to rapidly build a secure transaction ecosystem in the US. We believe Isis will usher in a new approach for service providers worldwide to build similar ecosystem based mobile payment and commerce networks for their respective markets.”

The laundry list of services include: Mobile Banking, Mobile Bill Payments, Mobile Brokerage, Mobile Money Transfer, Mobile P2P Payments, Mobile Micro Payments, Mobile Insurance, Mobile Ticketing, Mobile Coupons, Mobile Loyalty, Mobile Advertising, Mobile Prepaid Airtime, Mobile Stored Value, Mobile Gift Cards, Mobile Parking, Mobile Security, Mobile City Services, Mobile City Card, Mobile Transit, Mobile Student Services and Mobile NFC Service.

“C-SAM’s platform provides coverage across various carrier networks, operating systems, and NFC handsets, ensuring Isis can rapidly scale,” said Michael Abbott, CEO of Isis. “Together with C-SAM, Isis will allow consumers to experience a new and secure way to shop, pay and save, all with the tap of their phone.”

Isis and C-SAM could spell trouble for Google Wallet

Google Wallet is a robust payments application that is secured by a secure element within an NFC phone. The application in its current iteration supports coupons and has Google Offers within the Google Wallet. From what we can gather so far, Isis intends to use a SIM card that acts as an NFC secure element. Isis also intends to act as its own TSM (Trusted Services Manager) and will push secure information and apps between vendors and consumers’ NFC phones. Where things are getting a little sticky for Google, however, is in the fact that Isis appears to be building a closed market space where other mobile wallets may or may not be able to be used over the three partners’ networks and potentially have to work through Isis to be able to function on the networks. Google is currently partnered with Sprint who have committed themselves to an open NFC approach where they simply allow transaction data to flow across their network. Another example of a company that uses a closed market approach is Apple. If you do not adhere to Apple’s terms, your app will never get onto iOS devices.

The agreement between Isis and C-SAM appears to have given Isis a lot of services the joint venture can support and its partners can build upon. The selection of services, as you will see above, offer a more dynamic set of capabilities that Google Wallet currently supports. Where as there is something to be said by doing fewer things but doing them well, Google may face a lot of competition because of the sheer raw potential of new ecosystems and opportunities that C-SAM offers developers and financial companies alike.

Isis’ product offering is coming together and we are starting to see its strategy for its NFC mobile wallet and “open ecosystem.” The functionalities it has gained through C-SAM and its partnerships it has announced with the major credit card issuers make it an alluring prospect for consumers that may well see it attain a dominant place in the US for mobile transactions. Google and other NFC mobile wallet providers may have trouble competing against a product lineup run by a company who can control NFC transactional data over the largest MNOs networks and who could ultimately control competing products ability to conduct business over those same networks.

The mantra coming out of Isis is that it gives consumers choice and in one respect it does, however, concerns remain about how open its ecosystem will be and privacy issues remain a focus and subject of debate. One of the main concerns that Isis will have to overcome with consumers is this – should one set of organizations have such control of a consumer’s financial life? As it currently stands AT&T Mobility, T-Mobile USA and Verizon Wireless will not only provide mobile wireless service and handle transactional details for consumers’ purchases, but will then also be able to have access to specific consumers’ purchase histories. This begs the question of what would happen if a consumer has a billing dispute with one of the MNOs? If service was cut from a customer, would they lose their ability to purchase goods and services? Would Isis have the ability to charge a consumer’s account? This potentially could disable someone from being able to function and is akin to putting all of your eggs in one basket. Privacy concerns include the same company that you use for internet services, being aware of your purchasing habits and as yet privacy terms and conditions have not been addressed by the joint venture. Isis may well have perfectly good answers for these objections that we have not heard as yet. However, if everything is above board we feel sure that Isis or any other company would have an objection to the FCC having a look over the model to ensure consumers’ privacy and rights are intact.

The internet has developed and evolved on a principle of a truly open ecosystem. Innovation has become part of the very fabric of what makes the web an ever evolving platform where consumers define success and failure based on unlimited choices. Net neutrality has been an issue that has seen major ISP’s battle to control the speed or accessibility of websites over networks and the Isis joint venture is running headlong into the same contentious issue. At this time, there are no regulations that will control what Isis can or cannot do with an NFC mobile wallet, there is no legislation that prevents major mobile network operators from selectively allowing or disallowing traffic over mobile networks or charging services to be able to function over networks.

As we head ever closer to a cashless society, we are migrating more and more of our personal and financial lives to systems that we have less and less control over. As a society, we have to ask ourselves – should mobile network operators have control of the services and financial aspects of our lives, or are we better to mitigate risk by using a variety of services from multiple companies so our proverbial eggs are never placed in one basket?

The product lineup and services Isis appears to be putting together is impressive. C-SAM has a formidable set of services and management tools that other NFC mobile wallet  providers will struggle to match. Our question to you, however, is what levels of services would need to be offered to make it worth while giving up your autonomy?