Google Hoping to Glue Its Mobile Wallet Back Together
Feb 20, 2015, 10:32 AM by Eric M. Zeman
Google is seeking help from its carrier and hardware partners to revitalize its flagging Google Wallet service. According to sources cited by the Wall Street Journal, Google is waving more cash in front of network operators to feature the app on their Android smartphones. Google told investors last month that it is prepared to launch a "fully functional payment system" that goes "beyond just tap and pay" at its I/O Developer Conference, scheduled for late May. Google's efforts won't be easy. Google doesn't enjoy the same level of control that Apple does, which manages the hardware and software of the iPhone. Google has to work with the carriers, handset makers, and financial institutions to make it all work. Apple cut carriers out of Apple Pay and only had to work with banks. Google's efforts are being undermined by its own partners. Earlier this week, Samsung purchased LoopPay to help it create its own competitor to Apple Pay; meanwhile, the bulk of Samsung's handsets run Google's Android platform. Moreover, the carriers have their own mobile payment service in place, called Softcard, and actively prevented Google Wallet from accessing the secure portions of their smartphones. According to the Journal, Google is offering carriers a bigger cut of ad dollars for promoting Google Wallet. Further, Google is in talks with carriers to purchase Softcard, which could help resolve some of the issues at play. Google declined to comment on the Journal's story.
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