It has been more than 2 1/2 years since the Google Wallet launched, and it is floundering. And no wonder; Google Wallet can function properly on a maximum of about 7% of the smartphones in the United States.
Why is their addressable market only 7%? Google Wallet relies on a security technology that is owned by the mobile network operators, and only one of these operators (Sprint) has agreed to work with Google Wallet. Verizon, AT&T have simply blocked Google Wallet from their networks. To make matters worse, the communication technology that is also relied on by Google Wallet is being blocked by Apple on all iPhones. With enemies like Verizon, AT&T, and Apple, how can Google Wallet possibly succeed?
The answer lies in a recently coroneted technology that was created only three years ago in Austin, Texas.
About the author
David W. Schropfer is an international business leader with two decades of management experience ranging from telecommunications to payment systems. Earlier in his career, he was Senior Vice President with IDT Telecom, and a Business Development Officer for Capital One. He has served on the Board of Directors for multiple companies, and is a frequent speaker at industry conferences and trade shows.
After graduating Boston College, David earned an Executive MBA from the University of Miami.
Table of Contents
- Executive Summary
- Introduction To The Predicate Industries
- Smart Cards
- Mobile Telecommunications
- How the Mobile Operators Challenged Google
- What is ISIS?
- Apple Blocks Google, Isis, And Everyone
- How Google is combating the problems?
- Cloud-based payments
- Physical card
- P2P Payments
- Apple App – No Payments
- Common Items Between Google Wallet And Isis
- Host Card Emulation Saves Google Wallet?
- What is Host Card Emulation?
- Summary and Conclusion
Tables and Figures
Figure 1: Worldwide Smartcard Sales
Figure 2: Example of Initiation of a Smartcard
Figure 3: Example Of Permission Request In Direct Method Of Authentication
Figure 4: Example of Access Granted by Authentication Server
Figure 5: Example of Challenge Question Authentication
Figure 6: Initialization of a SIM Card in a Mobile Phone Using the Secure Element
Figure 7: Authentication of a Mobile Phone Using a SIM Card
Figure 8: Multi-Factor Authentication in Voice and Text Data
Figure 10: How a TSM Functions
Figure 11: Mobile Network Operators and TSMs Involved in in Google Wallet 1.0 and 1.5
Figure 12: Market Share on Google Wallet 1.0 and 1.5 Mobile Operator Penetration
Figure 13: Diagram Of Isis Mobile Wallet Presented For Payment At POS
Figure 14: Diagram of Isis NFC case for iPhone 5SFigure 15: Apple iOS Market Share vs Android and Others in US, January 2014
Figure 16: Worldwide Apple iOS Market Share vs Android and Others, Calendar Year 2013
Figure 17: Photo of Physical Google Wallet Credit Card
Figure 18: Diagram of Actual Menu on the Google Wallet App on Apple's iPhone 5S
Figure 19: Sample of Mail Insert sent to AmEX's Serve Customers in January, 2014
Figure 20: Distribution Of Google Wallet Loyalty Programs by Industry
Based on primary research and data, Google Wallet 2.0 is essential for:
* Mobile network operator executives
* Financial and payment industry executives involved in mobile
* Technology and platform providers
* Innovators in mobile payments and mobile commerce
* Merchants and representatives of merchant associations
* Consumer association representatives
* Regulator and government representatives involved in payments systems
* Analysts and consultants
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