NEW YORK: Adding to a recent string of partnerships in the mobile and social media spaces, American Express has partnered with Verizon Wireless to provide a new digital service offering.
The partnership will enable Verizon customers to pay for goods using their phone number.
Although some details of the service are still being worked out, AmEx confirmed the service will be made available in the coming months.
Once it launches, interested Verizon subscribers will be able to sign up with AmEx for a Serve account, which is an open payment platform similar to PayPal. They will then be able to purchase digital or physical goods without a credit card simply by entering their phone number and pin code into an internet-connected device.
“Verizon has 100 million customers,” said Charlotte Hill, manager of corporate affairs and communications at AmEx. “We're thrilled here about the momentum and potential growth opportunities that this brings.”
AmEx decided to partner with Verizon for this offering due to the phone company's large customer base, as well as AmEx's general interest in evolving and expanding into the mobile market.
“Since we launched Serve in March, our strategy has been to be open, in terms of funding sources, technologies, and partners,” Hill added. “Carriers are key players in the evolution of mobile payments, so we're thrilled to be working with Verizon.”
The backend technology that enables the actual purchase relies on capabilities provided by Payphone, a company in which both AmEx and Verizon Wireless have invested.
AmEx declined to comment on how the company will be promoting the partnership, or whether there are plans to partner with other wireless providers.
AmEx also recently partnered with Foursquare to provide targeted mobile deals that bring together merchants and consumers, and launched a Facebook platform that offers deals based on users' social media preferences.