The Future of Google Wallet

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The Future of Google Wallet

Jan

By Joey Greenstone | Account Specialist

Only a month ago, Google Wallet was the future of mobile and in-store shopping. Google’s first big opportunity to release its new product on a mass scale was only a few weeks away, as the program was supposed to be integrated into the new Samsung Galaxy Nexus Smartphone. But after a decision on December 4^th by Verizon to block the Google Wallet application on the new devices, the momentum was put to an abrupt stop and the future of the technology became suddenly uncertain.

According to Google’s website, Google Wallet securely stores your credit cards and offers onto your phone. When checking out of stores, you can pay and redeem offers quickly by just tapping your phone at the point of sale, essentially allowing you to carry your wallet on the web. Critics, however, have put into the question of the security of Google’s mobile wallet, saying that it does not properly protect personal data, including credit card balance information. There is also the worry that hackers could use the unprotected information to successfully gain access to the consumer’s full credit card information.

Google is calling into question why Verizon is truly blocking their highly anticipated service. While Verizon has come out and said they are blocking to the app due to the previously mentioned security concerns, Google is claiming that Verizon is carrying out an anti-competitive move on the carrier’s part. Free Press, a nonprofit advocacy group, is asking the FCC to investigate whether Verizon is violating this law in part to protect their newest “mobile commerce network,” Isis. Isis mobile payment platform was jointly developed by Verizon, AT&T, and T-Mobile, and Verizon is pushing for this to be their mobile payment solution.

So where does that leave Google Wallet? What seems like a setback for Google’s technology might be more reflective of the general fear of having such valuable information on a device that is so often misplaced by its users. Recent studies by KPMG found only 23 percent of users are willing to use their mobile phone in place of other forms of payment. The recent concerns over Google Wallet, whether the truth behind Verizon’s motives were truly because of security concerns rather than competition, can only strengthen that perception that mobile payment just isn’t a viable option. With the rapidly changing landscape of mobile technology, it may be too soon to tell whether mobile payments will catch on in 2012.

Marketers should continue to keep an eye on mobile payments despite the security concerns. Especially brands that are already implementing Google Wallet in stores such as American Eagle, Toys R Us, and Gap to see both their successes and difficulties with the application. Looking to these companies will be key in developing your own mobile payment strategy.

The biggest impact that companies, big and small alike, will face with Google Wallet is the ease of use for consumers to use coupons. The age of digital coupons, led by companies such as Groupon and Living Social, continue to grow the demand for on-the-go coupons that are easily accessible and redeemable. Google Wallet stores all deals that are bought through Google Offer and are automatically redeemed at checkout, eliminating the need for a third party or paper coupon. In addition, Google Wallet can store rewards cards for individual stores so that consumers own rewards for their purchases, not only eliminating credit cards, but excess loyalty cards for individual stores. This also eliminates the concern for some marketers that a coupon may be used more than one time and strengthens the brands’ loyalty program. The potential to bridge the gap between coupons and payments into one transaction is Google Wallet’s biggest single advantage over competitors such as Isis and Square, a mobile payment startup company co-founded by Twitter founder Jack Dorsey.

While widespread use of mobile payments might not be ready in 2012, the growth of the technology is imminent. As Google and other companies continue to work through security issues, and consumers gain trust in possibly the next big mobile concept, marketers should begin to plan on integrating their mobile couponing strategy with Google Wallet. Verizon may have blocked Google Wallet from their most recent Android, but this is just the beginning for an emerging and promising technology.

Posted in Featured, Mobile