Capital One Pulls Out of Isis Pilot

With Capital One pulling out of Isis, are mobile payments in the U.S. doomed?

September 20, 2013

UNITED KINGDOM and WASHINGTON – Capital One, one of Isis' three founding card issuers, is pulling out of the NFC venture's pilot tests, NFC World and The Verge report.

The bank recently sent its cardholders who have been participating in the pilot notice about the termination.

As a result of the bank’s decision, The Verge speculated that the “U.S. mobile payments space may sputter before it even launches.”

Isis launched trials last year in Salt Lake City and Austin with plans to go nationwide by the end of this year. While Capital One said in its statement: "We continue to engage with Isis on the future of mobile payments," The Verge said that it is unlikely that the bank would bow out of the trial only to rejoin when the service expands nationally. American Express, Chase, and Barclayscard are Isis' other banking partners.

Mobile payments have been slow to gain momentum in the United States.

“With one fewer banking partner … there's a seemingly slim chance of Isis becoming dominant in the mobile payment space,” The Verge concluded.

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