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.
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
