M-wallet: New Features and More Cards for Google Wallet

• Google has been rethinking their m-wallet and, most of all, the issue of payment card storage; this data is now saved on its servers (Cloud) and no longer on the devices themselves where only the wallet’s identifier remains. This principle enables Google to identify the customer and charge the selected card no matter the network and issuer. The amount is first debited from a virtual card gathering all of the user’s cards: the payment then takes place in two steps. For banks, the integration process is free and takes less time than it used to.

• Based on customers’ feedbacks, Google Wallet now encompasses face-to-face payments and online payments. Subscribers add their means of payment directly and dispose of a dedicated portal where they can check on their transaction history.

• The cards loaded by the users, regardless of their network (Visa, MasterCard, American Express or Discover), are linked to a MasterCard virtual account hosted at Google. In case of loss or theft, the user may rely on a new feature enabling him to disable his wallet from his dedicated online space.

Source: Official Android Blog

• Presented in May 2011 and launched the following September, Google Wallet was limited to Citibank MasterCard cards or Google Prepaid card. Card information was then stored on the mobile devices which led Google to face several security issues. All these factors were further hindering the take off of its wallet while a large-scale rival, Isis, was readying test phases and making multiple partnership announcements. Unlike Google, however, Isis plans to charge the issuers for card storage, which may help Google.

• The evolution here presented by the Web giant means heavy financial investments (card fees) and imposes significant security and regulatory efforts. In fact, Google increasingly acts as a payment processor and not just as a provider anymore. We may also remind that, last April, Google bought the PaaS specialist TxVia precisely to improve its wallet (see April 2012 Insight).