Tag: google wallet

Google aims to expand its mobile payments platform

| February 26, 2015

Google to acquire Softcard technology in deal with major carriers

Google will be expanding the reach of its Google Wallet platform, and Softcard may be the way to accomplish this. Softcard is a joint venture from Verizon Wireless, AT&T, and T-Mobile, which was formerly known as Isis. The platform’s name was changed to avoid political issues that have emerged in recent years. Google has made a deal with the companies responsible for Softcard, which could help make Wallet one of the most popular mobile payments platforms currently available for Android devices.

Softcard technology could improve the Wallet platform and make it more attractive to consumers

According to the deal, Google will acquire Softcard’s technology, which Verizon Wireless, AT&T, and T-Mobile will pre-load Google Wallet on mobile devices that will be available in stores later this year. This could significantly expand the reach of Google Wallet, which had struggle to obtain consumer attention due to the launch of new mobile payments platforms, such as Apple Pay. The deal could also give Wallet access to better technology, which had previously been exclusive to Softcard.

Lack of NFC support cripples the growth of some mobile payments services

Google Mobile PaymentsGoogle has had trouble finding traction in the mobile payments space. The company initially only had one device carrier that wanted to support the Wallet platform, while relatively few device makers opted to support the platform’s key technology: NFC. The low availability of NFC-enabled mobile devices made Wallet relatively unpopular among consumers because the platform required this technology to function properly. Softcard experienced similar problems, with retailers being slow to adopt the NFC technology needed to support the mobile payments service.

Deal may help Wallet compete with other mobile payments ventures

Those using Softcard currently will still be able to use the platform in the future. Google Wallet will begin integrating some of the features that Softcard has received praise for while Google continues to improve its mobile payments infrastructure. Wallet will still have to face competition from Apple and, potentially, Samsung, both of whom have expressed strong desire to become dominant in the mobile payments space.

Mobile payments is growing slowly among consumers

| February 5, 2015

Unfamiliarity with payment platforms is slowing the adoption of mobile commerce

Wakefield Research has released a new survey that it has conducted on behalf of Verifone. The survey is focused on the mobile payments space, which has been experiencing a period of aggressive growth over the past year. Many people have shown interest in mobile payments, but the survey suggests that the actual adoption of new payment services is somewhat slow. People appear to be unfamiliar with these payment services, which place them somewhat outside the realm of mobile commerce.

50% of consumers report that they are unfamiliar with mobile payment services

According to the survey, some 50% of consumers polled noted that were unfamiliar with mobile payments. Many claimed that they did not know about services like Apple Pay or how these services work. Mobile wallets were a relatively unheard of platform among these consumers as well, suggesting that their familiarity with other payment services was quite low. Those that were aware of mobile payment services, however, noted that Google Wallet was their preferred platform.

Lack of mobile payment support among retailers is slowing adoption

Mobile Payments- Slow among consumersThe survey also shows that those that are interested in mobile payments are still restricted in actually making transactions from their mobile devices. While there are many opportunities to shop and pay for products online from a mobile device, making mobile payments in physical stores is relatively rare. Many retailers lack the point-of-sale terminals they need to accept mobile transactions, which limits the capabilities of mobile consumers.

Consumers may become more involved in the mobile commerce space in the coming years

A recent survey conducted by Lightspeed Research suggests that unfamiliarity with mobile payments may diminish over the coming years. The survey noted that 42% of people made a mobile transaction at some point in 2014, up from the 17% of people that did so in 2012. A report from eMarketer suggests that 25% of smartphone users will make a mobile payment by 2018. As consumers become more familiar with payment platforms, they are likely to begin participating in mobile commerce more frequently.