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.
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