Top lenders reach deal with mobile purchasing platform

Widespread acceptance of a new mobile credit card payment business put together by the nation’s three largest cellphone service providers just got one step closer as the companies teamed with four huge purchase processors.

AT&T, T-Mobile and Verizon – the three companies behind mobile payment system Isis – recently announced they had teamed with Visa, MasterCard, American Express and Discover to improve acceptance of the payment plan, according to a report from Forbes. Isis will be pilot tested in Salt Lake City, Utah, and Austin, Texas, early next year.

With the plan, the service providers would begin encouraging customers to purchase phones that contain microchips which can be loaded with consumers’ credit or debit card information, the report said. These devices could then be used to make purchases instead of swiping a card the traditional way.

Many view the largest hurdle to acceptance as being consumers’ fears about the security of such a system, and the way it handles their data. In addition, only a small handful of smartphones currently contain the necessary technology to participate in such a program.