Battle Heats Up Over Mobile Payments. Card issuers, banks, mobile network operators and even handset makers are increasingly fighting to take a share of the market.
American Express plans to offer U.K. card holders a range of location-based discounts and special offers via the check-in service Foursquare. The announcement comes as rival pay service PayPal has also launched a mobile payment system in the U.K.
The services illustrate the battle that is taking place over who will own the mobile payment space. Card issuers, banks, mobile network operators and even handset makers are increasingly fighting to take a share of the market.
Holders of “Amex” cards can unlock location-based offers from a host of high street brands. Savings are automatically credited by American Express to the account.
“We have direct relationships with card members, merchants and we have a network that connects them,” said Ed Gilligan, vice chairman of American Express. “In effect we own our own ecosystem.”
With the American Express service, a user links their card to their Foursquare account and is then able to redeem special offers.