Reports surfaced that Verizon (with other major wireless carriers expected to follow suite) has blocked Google Wallet from being used on their devices including the new Galaxy Nexus. The wireless company stated security concerns over the ecommerce system caused them to make the devices incompatible with Google Wallet.
Jeffrey Nelson, a company spokesman for Verizon issued a statement to Bloomberg “Verizon is committed to having the best security and user experience” and further says Google Wallet will be considered again “when those goals are achieved.” Other wireless carriers including AT&T and Sprint are expected to follow the same course of action.
Google Wallet would put the company right in the center of the multi-billion dollar mobile payments industry. A direct competitor for PayPal in this industry, the plan was to introduce Google Wallet in a select amount of cities including San Francisco, CA and New York, NY. Currently, the NFC-enabled Nexus is the only device that contains the capabilities, and this major setback is expected to put a severe damper on the implementation of the service.
There is news, however, that Verizon, AT&T, and Sprint are in talks to invest more than $100 million to a similar platform, called Isis. Information as this becomes available will be updated
Google Wallet, the new electronic self-checkout system that aims to simplify common purchases, reportedly entered into a contract with New Jersey Transit, the NJ based mass-transit system that includes Trains, Busses, and Subway systems in and out of New York and Pennsylvania. The company announced this week that they are implementing the ecommerce system to its ticketing machines throughout the state. What does this mean for busy commuters? Simply wave your iPhone or Android device in front of the ticket machine to automatically purchase your ticket and hop aboard.
The new Google Wallet system was launched last month and strategically places Google right in the heart of the multi-billion dollar mobile payments industry. Although PayPal, Inc. has changed the way of mobile payments, Google appears to be the first significant threat to the industry largely dominated by PayPal.
New Jersey Transit is the first transportation agency to partner and implement Google Wallet.
“Our partnership with Google demonstrates that N.J. Transit and the state are at the forefront of emerging technology, paving the way for further exploration of new customer-service technologies”, stated New Jersey Gov. Chris Christie.
Is there any competition? Reportedly, AT&T, T-Mobile and Verizon are in talks of a joint venture to introduce a similar concept in the North-West. Specifically, the State of Utah also announced recently that their Transit Authority expects to introduce a similar system in 2012. That system is the joint venture with AT&T, T-Mobile and Verizon.
Google Wallet is expected to launch today, as we covered back in May when the system was announced. The new system strategically places Google right in the heart of the multi-billion dollar mobile payments industry. The move to take market share away from PayPal sparked a lawsuit back in May, claiming two former PayPal employees now work for Google and play a critical role in launching the Wallet system. Although the results of the lawsuit are not discussed further, that system is expected to launch today.
Only a small amount of merchants, cities, and users will have access to Google Wallet in the early stages of launch. Most experts are aware that a new era of commerce is upon us. Just as pay-per-click management has begun to take over traditional advertising (see our tips for selecting the best ppc company), the launch of mobile wallet systems through smartphones may bring upon us a new era of commerce.
The only handheld device that is equipped to handle the software is the NFC-enabled Sprint Nexus. It’s a matter of time before smartphone manufactures create NFC enabled products. Could the iPhone 5 (anticipated to be announced any day now) include this technology? It remains to be seen how large and significant of an effect Google Wallets will have on ecommerce. More updates to follow.
Yesterday, Google rolled out their version of a mobile payment platform called “Google Wallet”. Their plan is to enter the multi-billion dollar mobile payments industry, which PayPal originally started many years ago. Amongst this news, PayPal promptly filed a 28-page lawsuit in the state of California against Google for allegedly stealing their mobile payments secrets.
One of the major contributing factors to PayPal’s suspicion of this is that fact that two former high ranking employees of PayPal, Stephanie Tilenius (now Google’s Vice President of Commerce), and Osama Bedier (now Google’s Vice President of Payments) are the ones who announced Google Wallet yesterday. Both of these employees joined Google in 2009, and 2010, respectively.
Google Wallet is a free Android based application that lets users store multiple credit cards, or even a Google prepaid card on their smartphone. This is still in the Beta stages, and is only available on Android, and not iOS as of yet.
Conveniently, users can pull out their smartphone, “tap, pay, and save” as Tilenius announced yesterday.
This works in congruence with MasterCard’s PayPass terminals, which have been installed in over 144,000 locations through the United States.
More on this story is surely to come, as PayPal feels Google stole this idea, although this could just be another incident where someone criticizes Google for continuing to enter emerging markets.