News Analysis: Google Wallet won't be available on the Galaxy Nexus, making some wonder if the mobile payment service's prospects aren't as bright as the search giant would have us believe.
the Samsung Galaxy Nexus launches later this month on Verizon Wireless'
network, don't expect the device to come with
Google Wallet support
. According to the latest reports, the device won't
allow users to make payments from the smartphone with Google's service,
potentially paving the way for more carriers to make similar decrees with other
devices as they push to implement their own near-field communication and mobile
Google, the reported ban is just the latest issue its mobile-payment system has
faced since its launch earlier this year. From a short list of devices that can
or will eventually be able to support the technology to tenuous relationships
with merchants and credit card companies, Google Wallet seems destined for the
junk heap before it even has a chance to get off the ground. Worst of all,
Google doesn't appear ready to address the problem as effectively as it could.
luckily for the search giant, there is a way out. And all it'll need to do is
read on to find out what that way out is.
Issue 1: Carriers Obviously Don't Like It
has a major problem on its hands if carriers don't like Google Wallet. A key
component in the search giant's plan is
getting carriers to sign on
. However, many of them already have their own
mobile payment systems, including Verizon Wireless, AT&T and T-Mobile,
which have Isis. As long as carriers don't like Google Wallet-and try to block
it-the service will be in trouble.
Issue 2: Consumer Knowledge Is Low
around the consumer market, it's hard to find many people who truly understand
how near-field communication and Google Wallet work. That's a major issue for
Google. If the search giant can't make consumers believe using Google Wallet to
make payments is a good idea, what chance will its service have of ever getting
off the ground?
Issue 3: Where Are All the Devices?
has promised that all future Android handsets will ship with near-field
communication technology. However, what the company hasn't said is that there
are hardly any devices in the offing that people actually want that will come
with support for Google Wallet. Combine that with limited carrier support, and
Google Wallet might have some rough days ahead.
Issue 4: Everyone Has an Ulterior Motive
Verizon has Isis
, a solution that competes with Google Wallet. But it's not
just the carrier. Credit card companies, competitors and, in some cases, even
service providers are reportedly considering launching a Google Wallet
alternative. Next year might be the year of mobile payment applications. For
Google, a company with a service that relies upon strong relations with other
firms, that is bad news.
Issue 5: The Longer It Takes, the Worse It
Wallet's opportunity for success is on the clock. Reports have been circling about
Apple considering launching a Google Wallet competitor in 2012. If that's the
case, Apple is expected to use the data it already has in iTunes to make it
easier for users to adopt its service. An Apple mobile payment solution could
be the death knell for Google Wallet. So the search giant needs to get its
service into the mainstream sooner rather than later. The longer it takes for
Google Wallet to win out, the worse it will be for Google.