Google Plans Overhaul for Its Mobile Wallet

Would revenue sharing with telecoms increase adoption?

   
Google Plans Overhaul for Its Mobile Wallet

Google sign 630 300x151 Google Plans Overhaul for Its Mobile WalletTo get more adoption of its Wallet app, Google (NASDAQ:GOOG) is thinking about offering a revenue share with Verizon (NYSE:VZ) and AT&T (NYSE:T). The company’s technology allows people to use their smartphones to pay for things — simply by tapping a merchants’s terminal.

But Google believes that its Wallet will be more than about payments. In fact, it could be a great way to get a piece of Groupon’s (NASDAQ:GRPN) business by offering discounts and vouchers.

Yet Wallet faces some big challenges. One is that two of Google’s top managers on the project — Jonathan Wall and Marc Freed Finnegan — have left. They’re actually creating their own mobile startup.

Another issue is that Verizon, AT&T and T-Mobile USA have teamed up to create their own mobile payments system, called ISIS. These companies realize the strategic importance of this emerging industry and certainly want to dominate the industry — which could make it tough for Google to make serious inroads into the market.


Article printed from InvestorPlace Media, http://investorplace.com/2012/03/google-plans-overhaul-for-its-mobile-wallet/.

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