Tag: google wallet

Google makes an ambitious move in the mobile payments sector

| June 12, 2015

Android Pay will not charge transaction fees to card providers

Google has announced that it will not be charging transaction fees on mobile payments made through its new Android Pay platform. The move has to do with competing more aggressively with Apple, who has found significant traction in the mobile payments space. Google will not be receiving a percentage of transactions processed from payment cards, such as MasterCard and Visa, which may make Android pay significantly more attractive to merchants interested in the mobile space.

Tokenization may be the death of transaction fees

Google had initially intended to charge a fee on credit card transactions, as this has become the standard for the mobile payments industry, but opted not to. One of the reasons for this is the growing prominence of tokenization, a security practice that replaces financial information with digital tokens. This practice has been adopted and heavily promoted by both MasterCard and Visa as a way to make mobile transactions more secure. One of the issues with tokenization is that it prevents payment services from charging fees to card providers.

Android Pay may become Google’s default mobile payments platform

Mobile Payments - No FeesIn 2011, Google introduced its Wallet platform, which served as the company’s first entry into the mobile payments sector. Google Wallet experienced a relatively rough launch and has struggled to find traction with consumers since. Over the years, Google has been making changes to its approach to the mobile payments market, and the company now plans to launch, making acquisitions to improve its position in the market. In late 2013, Google acquired Softcard, and the company’s technology was used to develop Android Pay.

Downfall of transaction fees may bring more merchants into the mobile payments market

Transaction fees have been a significant challenge for retailers and card providers interested in the mobile payments space. While such fees are nothing new in the world of commerce, the mobile sector is still an unproven market, despite the promise that it shows. As such, merchants are somewhat uncertain about entering in the mobile payments space, expressing concern that this sector may be little more than a passing fancy for most consumers.

Google plans to ramp up its mobile payments endeavors

| June 2, 2015

Google will overhaul its Wallet service and launch Android Pay in the near future

The battle for mobile payments supremacy is heating up, and Google plans to launch a new service that will establish it as a leader. The company plans to overhaul its troubled Wallet platform, which has struggled to gain traction among consumers in recent years. Google has plans to launch a new service called Android Pay, which will allow merchants to accept payments from credit cards as well as mobile applications.

Android Pay aims to make physical mobile payments possible in stores

Android Pay is designed to be a standalone mobile payments solution and will not replace Google Wallet. The Wallet application will receive special attention, making it more attractive to consumers that are interested in mobile payments. The app is being re-designed as a peer-to-peer platform, which will also allow consumers to send money to one another. They will still be able to use the platform to make payments to merchants that accept Google Wallet, of course.

Demand for mobile payment support in physical stores is rising quickly

Google - Mobile PaymentsAndroid Pay may become Google’s more favored mobile payments solution, as it is designed with brick-and-mortar stores in mind. Demand for mobile payment support in physical stores is on the rise, and companies like Google want to accommodate this demand by providing new services that make these payments more convenient. In this way, Android Pay will perform in much the same way that other mobile payments platforms do.

Google will face tough competition in the mobile payments space

Though Google has ambitious plans for mobile payments, the company will be faced with intense competition coming from others. Samsung is one of these companies. Later this year, Samsung plans to launch its own mobile payments service, called Samsung Pay. This service will provide consumers with a way to make purchases in physical stores using their mobile devices. Apple also plans to improve its own mobile payments service, introducing a loyalty program and making improvements to its already considerable security features.