Verizon Wireless announces sidetrack plan for mobile payments

Verizon Wireless (VZ) is pursuing another track in the mobile payments race, announcing today plans to work with Payfone Inc. to build a new payments system for customers to use for online purchases.
The new system will allow customers to make online purchases from their smartphones and other connected devices by either adding the purchases to their monthly wireless bills or using traditional payment methods from credit cards, banks and the like.
The move comes as Verizon’s joint venture with AT&T Mobility (T) and T-Mobile (DTEGY) hit the skids to some extent after it abandoned plans to build a proprietary network with Discover Financial Services (DFS) and Barclays Plc (BARC). Some analysts have since viewed the shift as a reaction to the fast-moving race that’s underway for a ubiquitous and well adopted mobile commerce platform.
“Our relationship with Payfone complements the part of the mobile payments equation we’re already working on with our Isis joint venture,” said Greg Haller, marketing vice president at Verizon Wireless. “We approach the mobile payments arena from a customer’s perspective. As we move forward, the most important goals will be security, privacy and simplicity. Through our relationship with Payfone, we will be able to quickly offer value to our customers by offering them greater choice and a simple, safe and secure purchasing experience when shopping online from their smartphones, tablets and PCs.”
There are probably various reasons for Verizon’s sidetrack move. It could serve to give Verizon more control over a mobile payments system or be a a plan B in case ISIS flames out or flounders as it competes with the likes of Visa Inc. (V), Google Inc. (GOOG) and many others.