Analysis of Google Wallet Launch - Key Facts & Lingering Questions
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From MasterCard's "The Heart of Commerce" Blog: First Release of Google Wallet with MasterCard Now Available for Sprint Nexus S 4G customers! |
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Well, the day we had all been waiting for finally arrived. Yesterday, September 19th, Google launched its long-awaited and much-anticipated Google Wallet. The Web is buzzing with news of this launch, but let us boil it down for you (a convenient listing of all of the stories published so far is presented below).
Here’s what we know:
1. You must have a Sprint Nexus S 4G Phone to get it.
2. You must have a Citi MasterCard or Google Prepaid card to actually use it to pay for stuff. In order to put those cards in your Google Wallet, you have to download the Android wallet application.
3. Since it works with MasterCard’s PayPass technology, it can be used anywhere that technology is used, which is currently about 120K U.S. locations, 300K worldwide.
4. Google Wallet beat ISIS to market with its NFC wallet solution.
5. Someone probably paid Jason Alexander (who plays Seinfeld buddy George Costanza) a lot of money to star in the commercial that is promoting Google Wallet.
6. Right this very minute, you can use Google Wallet at selected Toys"R"Us, Jamba Juice, OfficeMax and American Eagle Outfitters (those are configured with something called Google Single Tap), as well as Peet’s Coffee & Tea, Champs Sports, Coca-Cola, Jack in the Box, Sunoco, Sports Authority, Radio Shack, CVS and Duane Reade (all MasterCard PayPass locations).
7. Google Offers is only enabled at Google Single Tap locations.
Here’s what we’re still waiting to know:
1. When the other participating retailers will be activated and whether they will be PayPass or Google Single Tap enabled. Presumably, Google Single Tap are those merchants that Google is subsidizing to install NFC readers and enabling merchant offers to be driven and redeemed via that interface.
2. When Visa cards can be added to Google’s Wallet. Although Visa granted Google a worldwide license for use of its PayWave technology so that Visa cards can work in those wallets, it’s not clear from the press accounts when we can expect to see that happen.
3. When other handsets will be enabled, and by other handsets, we mean Motorola as well as Samsung, HTC, etc.
4. If and when Offers will be extended to PayPass locations.
5. How consumers and merchants will like it. (Related: Will Google Wallet Ignite mPayments? PYMNTS Readers Weigh In)
6. What V.2 will look like. Executives hinted that more features and functions are on the horizon.
It’s pretty exciting stuff, and we’ve written a lot about Google’s prospects for making mobile NFC a reality in the United States.
For those of you without Sprint phones (most of us!) and who want to see the experience up close and personal, PYMNTS.com was treated to a demo that you can watch here. And, look for a more in-depth piece later this week, which will examine who and how the U.S. mobile payments race will be won now that we also understand PayPal’s mobile payments solution.
Related Content:
- Google Wallet in Action (UNCENSORED!)
- Sprint Launches First Google Wallet
- Visa and Google Sign Licensing Deal to Boost Mobile Payment Adoption
- George Costanza is First Google Wallet Customer [VIDEO]
- Op-Ed: From Search to Swipe... Google Does Cards
Karen Webster is the CEO of Market Platform Dynamics (MPD), a consulting firm that helps companies find, implement and monetize innovation. She serves as an advisor and member of the board for a number of companies operating in the payment, technology and digital media industries. More info here.
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Comments
A couple more questions worth asking:
1. Where exactly is the innovation in this payment solution? Phone replaces a contactless plastic card as a carrier of the transaction funding information? How is this solution mobile? Or more mobile than a contactless card or Mobil SpeedPass?
2. What is the complete set of roles and responsibilities in the value chain? What is the business model? who pays for what and who gets paid for what?
3. So if you have a Citi Mastercard and Nexus S 4G mobile phone on the Sprint network with data plan, then you can pay at PayPass locations which are processed by First Data and are on the Google One Tap List. At this point I wonder if you make a conjunction of these conditions how much adoption (actual use) can you get. There are over 5B mobile phones in the world of which the great majority are prepaid and with no NFC or data plan.
Posted by Max Maxter, 24/09/2011 10:24am (8 months ago)
I think Google Wallet is a pretty awesome step forward. That said, I don't consider it to be revolutionary, more evolutionary. Why? Because it doesn't address the biggest annoyance in retail / brick and mortar: the line.
That said, Google Wallet does do a lot of things. It saves seconds on each transaction so that can aggregate to slightly quicker queue times. It accumulates information in a central place so you don't need to dig for a specific payment card / specific rewards card. So all that is great! I just think it needs to go even further.
I'm working on a mobile payment solution for restaurants that allows patrons to open, view and pay their tabs from their mobile phones - (TotalTab, http://www.totaltab.com). I think the self-checkout option is where the future really is. Being able to do what you want and move on when you (the consumer) are ready.
Still, I'll gladly take Google Wallet over my CC any day in places where self-checkout isn't yet feasible!
If you are interested in reading more: I expand on this in my own blog post from a few months back when Google Wallet was first announced.
http://www.totaltab.com/2011/05/27/googles-mobile-wallet-and-nfc-an-evolution-not-a-revolution/"
Posted by TotalTab, 21/09/2011 12:26pm (8 months ago)
While this news is enticing the reality will be a lot less exciting. Fortunately for Google they have enough money in their coffers to wait out the 3-4 years it is going to take for this dream to become a reality. In the meantime, those with IP in this arena will be looking to cash in now.
Posted by Jon Shore, 21/09/2011 3:56am (8 months ago)
Karen, could this launch announcement be premature or did something happen?? I have a Nexus S, but no OTA download updated my phone with the wallet, and I am unable to find it at the Android Market.
Posted by Jeff Fraser, 20/09/2011 1:59pm (8 months ago)
What is the number of Sprint Nexus S 4G Phones in the market today?
Posted by Nicola, 20/09/2011 10:20am (8 months ago)
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