AT&T Blames Regulation for Changed Isis Strategy
May 16, 2011, 10:07 AM by Eric M. Zeman
An AT&T executive indicated to Reuters in an interview that changes to banking and debit card regulations forced it and its Isis partners (T-Mobile, Verizon Wireless) to make changes to their planned near-field communications mobile payment system. "Some changes in the banking laws occurred with the amendments that were put in with the Dodd-Frank bill ... As transaction fees were limited and things were changed, it kind of changed the business model," said John Stankey, AT&T's head of business solutions. On May 4, it came to light that Isis's original plans were going to be changed, though a reason hadn't been given. AT&T, T-Mobile USA, and Verizon Wireless now plan to develop a "mobile wallet" with the help of Visa and MasterCard. The mobile wallet service will still likely use near-field communications to enable the wireless transactions, though exact details aren't available.
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