Wallet has yet to find traction in mobile commerce
Google has been a big name in the mobile commerce space, but not necessarily a well-loved name. The company’s Wallet platform, which exists to facilitate mobile payments, has been the recipient of harsh criticism since its launch. The early days of Google Wallet were plagued by serious security issues that drove many consumers to other mobile commerce platforms. While these issues were ultimately resolved, Wallet experienced other hardships that made it unpopular with consumers, with companies like Verizon refusing to support the mobile commerce platform for various reasons.
Google continues to invest in Wallet platform
Google may have a strong interest in mobile commerce, but the company has not been able to find any significant traction in this sector. Google has invested more than $300 million into the Wallet platform, which also includes the acquisition of companies that had specialized in application development and mobile commerce. The company has also devoted more than 100 developers to focus solely on the Wallet platform. Despite this support, the Wallet has only seen 10 million downloads worldwide, a very low number in the mobile space.
Wallet fails to enthrall consumers
One of the reasons that Google Wallet has not become the dominating force in the mobile commerce space has to do with U.S. telecommunications companies. Few of these companies are interested in supporting the Wallet due to the other alternatives that are available. Lack of support means less exposure with consumers, which means that fewer people even know that Google Wallet exists. In the case of Verizon, AT&T, and T-Mobile, these companies have teamed together to launch their own mobile commerce platform called Isis, which has thus far proven to be somewhat more popular than the Wallet despite a very limited release.
Google may abandon Wallet platform, eventually
The Google Wallet was once considered by Google to be the key to mobile commerce success, but the platform has become a serious money sink for the company. It is uncertain how long Google will continue to devote money to the Wallet platform, but the company has not yet shown any signs of abandoning its mobile commerce endeavors.
Mobile payments sector seeing a decline in wallet applications
Mobile commerce is quickly becoming a major trend among consumers around the world. Many people consider mobile payments to be a simpler, more convenient way to pay for goods and services, partly due to the fact that mobile technology is so prolific. Much of mobile commerce has been powered through the use of mobile wallets, lightweight mobile applications meant to store and use financial information. While mobile commerce has been seeing strong growth over the past two years, these mobile wallets have not been growing more popular among consumers.
Wallets had been popular, but focus on NFC drives consumers away
In the advent of mobile payments, mobile wallets had been considered a necessary platform for mobile commerce as they provided much of the needed infrastructure for this form of commerce to work. Many of these applications are based on NFC technology, which allows for digital information to be transmitted over short distances. The problem, however, is that NFC technology is not universally supported throughout the mobile space. Indeed, the technology has been losing support from many of the companies and organizations that have emerged as strong players in the field of mobile payments, such as PayPal.
Consumers, as well as device makers, are favoring options free from NFC
Mobile wallets are beginning to give way to other applications that take a more accommodating approach to mobile payments. These applications seek to enable a wider range of consumers to participate in mobile commerce, which had, in the past, been largely restricted to those with NFC-enabled devices. These devices are still rare despite the efforts of companies invested in mobile commerce to see their expansion. A growing number of device manufacturers are beginning to abandon NFC technology, favoring mobile commerce platforms that offer some alternative.
Wallets may still be valid in mobile payments if an alternative to NFC is found
As device makers, like Apple, begin to move away from NFC technology, mobile wallets may be due for some change. These applications still receive significant support from Google and Isis, but the NFC-capabilities of these platforms make them unaccommodating to the growing interests of consumers. If organizations focused on mobile commerce want to retain the foothold they have established in this still emerging sector, they may soon have to consider finding an alternative to NFC technology.
