The site will be unavailable in 56 minutes for scheduled maintenance.

Jamba's Million Smoothies Could Give Telecoms a Boost

Let's not dismiss the wireless carriers as potentially potent players in mobile payments.

Isis -- the mobile commerce venture backed by AT&T (NYSE: T  ) , Verizon (NYSE: VZ  ) , and T-Mobile (NYSE: TMUS  ) -- is hoping that giving away 1 million Jamba Juice smoothies will help kick off the launch of the Isis Mobile Wallet later this year.

Jamba Juice parent Jamba (NASDAQ: JMBA  ) has been open to mobile payments in the past, and this move makes sense. We don't know the exact terms of who will cover the tab for the million blended fruit beverages "purchased" by customers using the Isis Mobile Wallet, but it comes at an ideal time for Jamba. Company stock tumbled like berries into a blender earlier this month after Jamba hosed down its sales guidance for the balance of the year. This high-profile promotional stunt may introduce new customers to Jamba Juice, and that could be a game-changing experience to folks who are used to choosing between the only two to three boost-less smoothies available at fast-food chains and coffee shops. 

However, this could also work well for AT&T, Verizon, and T-Mobile. Why should PayPal, Square, and other buzz-worthy mobile payment platforms get all of the glory here? The three carriers set their competitive differences aside to create Isis, and the rollout of Isis Mobile Wallet should be the crowning achievement for the three companies.

It may not be an easy sell. For starters, Isis Mobile Wallet is limited to NFC-enabled smartphones. In other words, don't try this at home with your iPhone. However, it's not just about having an Android device that happens to play nice with an NFC chip to tap for purchases. The device also must have an enhanced SIM provided by AT&T, Verizon, or T-Mobile. It is only then that they can download the Isis Mobile Wallet app and then work their way up that free smoothie. 

The neat thing about the limited promotion is that we will see how successful it ultimately is in getting early adopters to embrace the carrier-backed platform. After all, this giveaway is "up to" 1 million free Jamba Juice smoothies. If enough subscribers to the three carriers don't jump through the hoops to set up the mobile wallet, Jamba will have some sad blenders lamenting the free beverages that they failed to give away.

One of the three Isis backers may be the smartest play in mobile
Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access The Motley Fool's latest free report: "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2686220, ~/Articles/ArticleHandler.aspx, 8/28/2014 9:33:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement