In a bid to further expand its digital payment services,
) or popularly known as AmEx, collaborated with Isis, the mobile
commerce joint venture (JV) of U.S. telecom giants - AT&T
Mobility, T-Mobile and Verizon Wireless.
The deal will allow American Express' U.S. Consumer, OPEN Small
Business and Serve Cards to be available in the Isis Mobile Wallet.
The first Isis Mobile Wallet featuring these services will be
launched in Salt Lake City, Utah and Austin, Texas later this
The collaboration will help AmEx to benefit from Isis' merchant
network to ensure a secure shopping experience. However, customers
are required to upgrade their mobile with Near Field Communications
("NFC") technology in order to avail this service. Subsequent to
the roll out of this new service, a mobile device is all that a
customer would need to redeem coupons and store merchant loyalty
AmEx had already initiated the digital payments and commerce
platform following a deal with Serve, an AmEx initiative for next
generation technology that aids eCommerce through the products and
services that the mobile and card companies develop.
The collaboration with Isis will further enhance the benefits
derived therein and do away with credit checks or any kind of
periodical payments. It is expected that this "tap-and-go" service
will cater to an entirely new group of consumers, thereby
increasing the customer base for AmEx.
AmEx customers who are already using the facilities of Serve
will be able to use virtual wallet technology by Isis sometime
later with no specific date mentioned by either party. Until then,
it will continue offering its dynamic and unified digital platform
to a wide range of customers.
AmEx has been upgrading its digital payment platform through
strategic alliances, which is not only expanding the company's card
membership base but also helping it penetrate the unexplored
markets and tap the upcoming opportunities in the field of
Isishad previously provided similar services to AmEx's prime
). With regulatory restrictions remaining an overhang on the credit
and debit card business these card giants are vigorously expanding
into the prepaid cards, mobile banking and eCommerce space.
We retain our long term Neutral recommendation on AmEx. The
company currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating.
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