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Visa launches Android app with merchant offers

Payments franchise Visa has launched a commercial mobile application that bundles offers, transaction alerts and a locator service.

Visa Mobile's payment-related services are now operational on mobile devices powered by Android, the Open Handset Alliance's open-source platform for phones including the T-Mobile G1 with Google. Fourteen leading national merchants are supporting the initial launch of Visa Mobile on Android by providing offers to Visa cardholders.

"The importance of this announcement is that this is Visa Mobile's first commercial application, which has three specific functions that enhance the payments experience," said Pam Zuercher, head of product innovation for Visa, Foster City, CA.

"This is part of Visa's initiative to extend existing services into the mobile channel in order to increase value," she said. "Our goal is to provide services that enhance and enrich the core payments and transaction experience."

Chase Visa credit and debit cardholders will have exclusive access to the Visa Mobile application for a limited time.

After a few months, Visa will expand access to its other cardholders.

"While the initial launch is targeting Chase Visa cardholders, there are a broad range of cardholders that are interested in getting offers and discounts on a mobile device as a more convenient way to get those coupons and redeem them," Ms. Zuercher said.

"That universe will expand as we open up participation to all other issuers," she said.

The application will let select Chase Visa cardholders receive notifications about transaction activity on their accounts; get offers from a wide array of merchants; and use the integrated Google mapping technology to quickly find nearby participating merchants or ATMs that accept Visa.

Merchants supporting the initial launch include 1-800-Flowers.com, Bonefish Grill, eBags.com, eMusic.com, FragranceNet.com, Joseph A. Bank, Lenovo, Overstock.com, Planet Hollywood, Restaurant.com and Shoes.com.

Visa cardholders will be able to receive offers from these merchants directly to their Android-powered mobile device, including discounts and coupons.

Visa will initially send offers to an inbox within the application where consumers can click on the name of a partner making an offer to get more details and view the promotion.

Visa is looking at supporting other means of delivery for the offers, such as SMS. But no timetable has been set.

Some merchants will be driving traffic to physical locations, while others will be driving consumers to their online storefronts.

Google mapping technology guides consumers to nearby locations of merchants sending them offers.

Visa claims that its Android app is the first commercial service nationwide to bundle offers, transaction alerts and a locator service into one application.

Visa's mobile application for Android is designed to help improve consumers' ability to manage and protect their Visa accounts and get offers from merchants that are tailored specifically for their interests.

Visa cardholders with Android-powered devices can download the Visa Mobile application from the Android Market and enroll to receive services.

Consumers are also able to opt out at any time.

Near real-time notification of Visa account activity is based on cardholder preferences, such as the size of the transaction, or whether the transaction is in foreign currency.

Because these alerts are triggered by the transaction as it passes through the Visa network, consumers will receive notifications almost immediately after completing their purchase.

This service is intended to increase cardholders' peace of mind by letting them track their Visa spending. It also provides Visa with a new way to combat payment card fraud.

Consumers will be able to receive offers from any of the participating merchants directly to their phone.

These offers -- ranging from discounts, loyalty points and statement credits -- could be based on a consumer's previous purchase activity.

For consumers and merchants alike, this service is intended to ensure that the most relevant offers are sent in a timely manner, helping increase merchant traffic, loyalty and customer satisfaction.

A locator service is integrated with Google Maps and Google location-based services to show consumers the nearby locations of merchants sending them offers or of an ATM that accepts Visa.

The location would be highlighted on a map on the mobile device's screen and the user would also be able to get driving directions to the location.

Last night, Visa's applications were demonstrated by Visa and Google representatives at the Wired Store in New York.

The event was a live premiere of a series of digital short films, "The Line," featuring Saturday Night Live's Seth Meyers, Bill Hader, Jason Sudeikis and Simon Rich.

Invited guests at the party had a chance to touch and experience the Visa Mobile services on the T-Mobile G1.

JPMorgan Chase & Co. is a leading global financial services firm with assets of $2 trillion and operations in more than 60 countries.

The company has about 157 million credit cards issued.

Visa Inc. claims to operate the world's largest retail electronic payments network, providing processing services and payment product platforms. This includes consumer credit, debit, prepaid and commercial payments, which are offered under the Visa, Visa Electron, Interlink and Plus brands.

There is no doubt that mobile is key to Visa's growth plans.

"Mobile offers can be delivered through a message sent to a consumer's mobile device, which is the most convenient method for delivery and redemption," Ms. Zuercher said.

"Some merchants have online check-out, while in some cases consumers will show the cashier at the point of sale and input a promotion code at check-out," she said.

"We will integrate that with our network capabilities, so all you have to do is use your card at the POS, and we'll look for your card number, monitor your activity and let you know when you qualify for a certain offer."

Visa will be marketing the Android app via multiple channels.

"Our issuers will roll out their own marketing programs via direct mail and email," Ms. Zuercher said. "We have a multichannel campaign that includes Wired stores, elevator ads, online ads at Visa.com and promotional events at certain malls and in proximity of T-Mobile stores."

Eventually, Visa aims to launch mobile contactless payments using its payWave platform and enable remittances and remote payment via IVR, SMS and the mobile Internet.

"At Visa, we want to expand the distribution of value-added services currently available on Android handsets to other platforms and other carriers," Ms. Zuercher said.

"We want to increase the number of mobile applications to offer more distribution and more services," she said.