In an attempt to ease out money transaction while shopping, Verizon Communications Inc. (VZ - Free Report) has launched Isis Mobile Wallet across the U.S., which offers users the benefits of virtual versions of debit and credit cards. Isis Mobile Wallet uses near-field communication to ensure a safe and secure transaction without swiping a card.
Verizon customers can download Isis Mobile Wallet from Google Play Store and install it with an enhanced SIM card available at the company’s retail outlets or at My Verizon. The company is also offering 15 pre-installed Isis Mobile Wallet phones including Samsung Galaxy S4 and several other DROID smartphones.
The company in its press release also stated that over 20,000 retail locations would be equipped with Isis compatible payment terminals in which customers can access the tap-to-pay technology of Isis Mobile Wallet.
Verizon is riding high on its wireless business which is also bolstered by robust deployment of the 4G Long Term Evolution (LTE) network. This leads to improved operating and capital efficiency. The company is leading the industry in terms of 4G deployment. As of Sep 30, 2013, it covered 500 markets and more than 303 million people (nearly 99% of the total 3G network). Verizon expects to convert the entire nationwide 3G footprint to 4G by 2013. We also appreciate various strategic initiatives that the company has taken over the last couple of months. The company’s new data plan — Share Everything —accounts for almost 42% of its post-paid account base and is expected to generate high revenues over the long term. The company is also contemplating the buyout of the remaining 45% stake of Verizon Wireless, currently controlled by Vodafone Group plc (VOD - Free Report) .
Further, Verizon’s top line is gaining significantly from smartphone sales including Apple Inc.’s (AAPL - Free Report) iPhone along with the introduction of other devices. During the third quarter, the company’s smartphone penetration increased to 67%. Verizon activated 7.6 million smartphones and introduced numerous devices to attract customers to 4G LTE that covers over 64% of total data traffic. In addition, the plan to roll out VoLTE is expected to boost its performance level.
Verizon has a Zacks Rank #3 (Hold).