Google Wallet: Will it be a success in the near future? – Part 2

Basically Google Wallet is an application preinstalled in Google’s mobile operating system, Android. As of yet, there are only two smartphones that have adorned the application, Samsung Galaxy Nexus S and Samsung Galaxy Nexus.

In addition to the application, the service also needs near-field-communication (NFC) chip in the handset that is only available in scant devices. Also needed for the service to fully function is a Google Wallet-ready and NFC-enabled device at shops, hotels and whatnots.

But the biggest problem is to convince retailers to purchase the NFC-enabled devices. There are only a small number retailers in the US who have purchased devices or are planning to do so in the near future.

“It may take some time to get things sorted out, as is typical with a lot of Google projects,” said Michael Gartenberg, an analyst covering mobile for Gartner. “But I doubt they’ll quit this market entirely. Still, it’s going to be a competitive market. Anyone who has a piece of mobile wants in. And I don’t see anyone ceding dominance to Google.”

Other carriers like AT&T and T-Mobile have explicitly disagreed to favour the service because they are working on their own digital wallet service called Isis. The group is planning to promulgate the service at Mobile World Congress.

Cellular phone manufacturers also do not seem interested in including NFC chips in their handsets as they make little sense and compromise the dimensions of the devices, one of competitive aspects in the contemporary market.

Motorola, for example, showed little interest in including chip in all of their smartphones because of the low demand from the customers.

“I guess there’s a bit of a chicken and egg issue here,” Motorola executive Christy Wyatt said. “We haven’t really seen an appetite for the applications and technology from consumers yet. There doesn’t seem to be a real need from consumers for mobile payments.”

Short URL: https://www.newspakistan.pk/?p=12852

Posted by Usman Khalid on Feb 15 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.