E-Wallet: Google Wallet Rethinks its Development Strategy
- Google Wallet seems to be having trouble finding its place on the US market, and has to rethink its strategy.
- According to Aite Group, over 50,000 potential customers have downloaded the required apps to pay with Google Wallet, but, only few actually used them. The development of this solution is hindered by two key factors: the limited number of compatible Smartphones (two for now, however several models should be launched this year) and its limited number of partners (the mobile carrier Sprint and Citibank are the only ones to have joined in this initiative). Google Wallet is still under trial and also has to face the deployment of likewise mobile tools by mobile carriers themselves (Isis for instance).
- To try and escape these issues, the Web giant may now envisage to share with mobile operators the revenue related to the use of its wallet. Furthermore, it might be working on long term strategy which would make it possible to avoid mobile carriers altogether. To this respect, Google would further fit in the payment process: its work with POS manufacturers VeriFone, Ingenico and ViVOtech may confirm this will.
- Google is seeking to set partnerships and did not however manage to convince Verizon in December 2011. Also, despite the fact that AT&T customers benefiting from a Samsung Galaxy Nexus now seem to be able to download Google Wallet from Android Marketplace, none of these two players did make an official statement regarding it. Recently highlighted vulnerabilities (see February Insight) may not provide for the development of this solution either: their raise concerns on the part of the users, no matter the company’s effort to remedy this issue.
- During the Mobile World Congress, Google announced that Sprint would be proposing more than ten compatible mobile phones in 2012, and the company should be starting to put pressure on developers through imposing its wallet as preferred payment method (this technique is already used by Apple).
- This obvious limitations are opposed to end- 2011 rumours stating that Google Wallet could be launched in Europe in 2012 (as soon as Q1-2012 in the UK).