Isis To Go National Despite Low Adoption Rates

After test-runs in Salt Lake City, Utah and Austin, Isis announced a nationwide launch scheduled for later this year, despite low adoption rates among consumers and retailers. They didn’t give further details on the launch date.

It doesn’t come as a surprise if you haven’t heard of Isis, even if it’s backed by giants like AT&T Mobility, T-Mobile US Inc., and Verizon Wireless.

Though the amount of NFC transactions is forecast to hit $110 billion by 2017, the U.S. has been slow to adopt NFC where traditional methods like bank cards and coupons are still the norm. Consumers with Isis can check-out, and redeem coupons and loyalty cards with their mobile devices.

Isis requires a smartphone with NFC (near field communication) technology and an Isis secure SIM, but devices that do not include NFC chips, such as iPhones, will still have Isis support.

Low user rates is an issue mired in culture and doesn’t seem to have a clear solution. It’s widely held that NFC would show a stronger future in the United States if three highly competitive mobile carriers choose to work together to push this technology. No such luck thus far.

Besides consumer adoption, NFC transactions also require that retailers have the Point of Sales systems that can accept NFC payments. It’s been projected that 1.3 million locations — out of more than 10 million POS terminals — will feature contact-less payment terminals by year end.

Retailers may see the benefits of accepting NFC payments, since Isis found that mobile wallets can promote brand loyalty through opt-in offers, coupons, and also increase sales. Elsewhere in the world, NFC is thriving worldwide. Stateside, widespread adoption would require a major shift in players creating the demand. Any takers?