updated 03:25 pm EDT, Mon August 1, 2011
Will offer PayPal-like service to customers
American Express and Verizon Wireless have announced they will integrate Amex's Serve digital payment and commerce platform onto Verizon mobile phones and tablets. Using Serve, Verizon subscribers will be able to make payments and redeem offers directly from their mobile devices. The two companies also plan to use Serve to offer subscribers online and mobile promos with participating shops.
American Express unveiled Serve back in March. The mobile payment service is similar to PayPal. Using Serve, a Verizon customer makes a purchase. Serve then authenticates the subscriber's phone number and clears hte sale. The amount of the item will then either be charged to the subscriber's card or, in some cases, deducted directly from the user's bank account.
The checkout process will be supported behind the scenes by Payfone, which will provided pre-authorization and intelligent routing. Verizon had already been using Payfone to allow customers to order digital items from some Internet stores and charge them to their monthly bills.
Verizon is also a partner in Isis, another digital wallet service that it has invested in with T-Mobile and AT&T. Isis will begin rolling out in the first half of 2012.