The testing is taking place in the Wells Fargo Customer Experience Research Lab, where up to 50 bank employees will conduct the next phase using mobile coupons, managing bank funds and monitoring credit card information. The companies will mark the final testing stage when they turn to actual consumers — up to 500 of them — to try out the program at the end of the year.
U.S. customers currently can use their mobile phones to check bank account information and transfer funds, but mobile payment technology, which requires a specially equipped phone, has yet to reach the U.S.
It's the first system in the U.S. to combine mobile banking and payments, Ho said.
PasswordByPhone Business Development Manager Marc Jarrett told XBIZ that using a mobile device to purchase adult content options already is widely used in Europe and is a popular alternative to using credit cards online.
"In our experience, Europeans are reluctant to use their credit cards online, so phone billing for DRM-protected content is a valuable alternative for content providers offering premium and exclusive content," Jarrett said. "Phone billing can be used for both subscriptions and pay-per-view content and is well suited for both video and music content.”
Visa currently accepts adult transactions in the U.S., and it is not yet clear whether the pay-by-phone option, should it be implemented, also will accept adult.
Ho said Wells Fargo and Visa currently are talking with mobile providers to offer a compatible device to consumers.
Visa representatives did not reply to requests for comment at press time.