SAN FRANCISCO (AFP) - Mobile wallet service Isis is changing its name to distance itself from an acronym used to refer to militant group Islamic State of Iraq and Syria.

US telecom companies AT&T, T-Mobile, and Verizon four years ago teamed together to back Isis, software that takes advantage of near-field communication chips in smartphones to allow people to consummate transactions by tapping mobile devices on sensor-enabled pads at shops.

"We wanted a name that brought life to our company and our values," Isis chief executive Michael Abbott said on Monday, July 7, 2014, in an online message about the decision to dump the name inspired by an Egyptian goddess.

"We have no interest in sharing a name with a group whose name has become synonymous with violence and our hearts go out to those who are suffering."

The company has not yet decided on a new name, Mr Abbott said.