Google Wallet

Google is said to be considering a few changes in their Google Wallet strategy because of poor adoption rates. According to Bloomberg, Google is contemplating sharing revenue with the carriers to make the service more appealing and get them to embrace G Wallet like they have done with the ISIS competitor. Of course we have to take all this with that big grain of salt, as Bloomberg is unable to name their sources because of the sensitive nature of the discussions. But this seems completely plausible. 

Google is facing the same sort of opposition on all sides that they had when they tried to introduce the original Nexus phone -- what Google thinks is good for consumers isn't good for carriers and manufacturers. NFC payment systems in our phones depend on three things -- hardware, adoption, and participation. OEM's have to build phones with the correct NFC hardware, which they have been slow to do. Even upcoming phones like the HTC One S don't include the necessary hardware, and the fabled NFC-enabled battery and/or stickers have yet to show their face. Without the hardware, nobody has access and the interest is low. With low consumer interest, OEM's have no incentive to make the hardware. That's a tough nut to crack.

There are many of us who are interested, and would use Google Wallet if it became widely available. But many is subjective. It's readily apparent there isn't a high enough consumer interest in adoption to tackle the problem Google is having with carrier and financial participation. If we cry for it enough, the carriers, banks, and retailers will jump to give it to us, and we're not crying for it enough. Security issues, and a lack of a solid advertising campaign aren't helping much on this front. When the only press you get about your product is bad press, nobody will be lining up to use your services.

Finally, the participation of carriers, OEM's, banks, and retailers is what will really drive Google Wallet forward. We're not seeing that, and odds are it's because not enough dollars are being spread around. I'm no financial analyst, but I'm pretty sure the folks at ISIS aren't afraid to throw money at U.S. carriers to get them on-board. Once you have names like AT&T and Verizon behind your mobile service, getting banks and stores to jump on the bandwagon is much easier. 

We love the idea of having Google Wallet for everyone who may want to use it. We also realize that Google is going to have to grease many a palm to make that happen, and if these reports are right Google finally does, too.

Source: Bloomberg

 

Reader comments

Google reportedly 'rethinking' Google Wallet strategy

17 Comments

You know what else would help Google Wallet......if Google says "F U Verizon" and makes the wallet app work with all phones that have the correct hardware. Mainly I'm talking about the GNex. Because I'm having problems with it, and many other people are having problems with it, it would just make sense to give it to the people that want it (but can't have it). We shouldn't have to do an internet work around or download an .apk. Google Wallet should be available to all who want it on the market (play store). That's just my $.02

Right.

It's amazing people don't get this - Google can build a phone, but it's the fanciest Personal Media Player without a carrier. Why do you think Google was trying to buy spectrum for so long?

Android Central keeps alluding to it (at least Phil and Jerry, anyway), but it's about time somebody writes the article about how the Nexus concept is all but dead in America. They're spot on, unless folks want to pay full price and be on GSM/HSPA+ (no CDMA or LTE available), the original concept of the Nexus phones no longer exists.

My favorite android app.
let's cry for it! (in the hope that people's voice can outnumber the money of corporate America).

I would love to use google wallet but there are so many more possibilities for nfc I don't understand why its not making it to more phones. Of apple gets it in to the iPhone this year we will start to see mainstream usage. Wallet is cool but things like opening your car door or front door to your home are much more interesting to me. It'll never happen without the hardware and unfortunately I think we need apple to take it to the next level.

I'm actually more miffed over the fact that the Tmobile Nexus S doesn't have support for Google Wallet. Still didn't stop me from getting it on my phone and working but I think their adoption rate would be a lot higher if ALL of their phones had access to it.

By default on T mobile's Nexus S you can't even see Google Wallet in the market and when you try from your computer it says " this item is not available on your carrier". Still, it didn't stop me from side loading Google wallet from an apk off of XDA but for those new or not as tech savvy I can see the mistake.

The REAL problem is that it's limited to a citi CREDIT card or a prepaid card, neither of which ANYONE wants if they don't ALREADY use those....It's needs to be able to accept the numbers/exp dates from ANY card....THEN ppl will cry and moan for it until they get it...and we need to skip putting it on phones to work around the damn carriers who are greedy and just put in on batteries or sd cards as I've heard, I think batteries would be a better idea....

ANYONE is a broad statement. I prefer to reload my prepaid card with my VISA debit card for the simple fact that it keeps everything separate, no direct links to my accounts. Also, Visa has long been partnered with Google Wallet BUT they won't be announcing anything until the 2012 Olympics, in the UK.

Visa is also in the works on a product to compete with GW.

I concede that Anyone was far too broad....and that seems like a safe way of doing it, but I think and have read that most ppl think the problem is that they can't link it to their EXISTING cards...who wants yet another statement etc to deal with when we already have accounts....That is is major downfall....well that and lack of phones it can be used on.....

Slow adoption rate well duh....of course....How many phones have nfc, not many....then take that number of phones that do actually have nfc and cut out all vzw galnex users because we aren't supposed to be able to download it from the market. Then add the fact that the sprint GalNex version hasn't released yet and if I am not mistaken wasn't wallet Meant for sprint users who weren't going to get isis? So after all that what you have left isn't very many nfc enabled phones.....Please someone correct me if I am wrong. But it seems like the only people who have it on their vzw galnex's are a little bit more of a power user IMO.

The carriers have way too much power in the US. I am kind of hoping Google buys out Sprint and T-mobile (I know its a long stretch, but I have to have hope right?) Although I doubt that will change some things because google will still have to try to make a profit, but something like that would at least make it so that 2 carriers will definitely have access to all of googles apps. Either that or Google has to grow some balls and say F U VZW and ATT. Lets get serious here, ANDROID DIRVES THE SALES OF PHONES IN THE US MARKET. Yes the Iphone is huge but the numbers dont lie, there are more Android devices combined than Iphones. If google pulls the plug on Android software or closed it (which Im not sure they can do since it is open source) it would force carriers to at least listen to them. I hate to say it, but I dont think Apple has ever had to put up with these same constraints from carriers.

Sorry just my mini rant

Because paying with cash is the right way to do things.
Trying to force a cashless society is wrong, a cashless society is opressive and invasive.
Google Wallet can burn in hell.

Good team effort everyone for not downloading it. Today was a good day for humanity.

If it were available on my phone and my provider then I would use it but it is not so I can't. Of course it is not going to do well when it is only limited to a few devices and basically one provider.