Google Misses Out on Apple’s Slice of Mobile Transactions

[Victorious Secret]

 

 

 

What happens when you miss getting out of the gates? Well, you miss out on money apparently. 

 

You see, when Apple Pay was launched, Apple had the leverage due to their tokenization implementations and the banks were willing to give up a slice to Apple because of the security features, a year later however VISA, MasterCard (and others I imagine) have finally standardized those implementations and made them free. 

 

What does this mean for Apple? Well, two years down the line they likely will have no more slice. What does it mean for Google? They don't get a slice at all, since they were late to the game and didn't have the leverage Apple had. Its a small slice, sure, but when you factor in the millions (if not tens of millions) of users and the god knows how many transactions, those fees would add up handsomely. 

 

I think this is even sadder when Google had mobile payments so long ago yet, in typical Google fashion, sat on their asses with it and never pushed it until after Apple showed up and crapped on the mobile carriers and their closed off payment solutions.

 

 

 

Credit-card issuers hope the changes pressure Apple to trim or eliminate its fees, say industry executives, highlighting the speed at which the economics are changing in the evolving mobile-payments business.

Google disclosed its payments service, Android Pay, in late May, with wireless providers, payment networks, retailers and banks, stepping up competition with Apple Pay, which launched late last year.

 

Hundreds of financial institutions scrambled to work with Apple Pay, afraid of being left at a competitive disadvantage. As a result, big banks and other card issuers agreed to give Apple 0.15% of the value of each credit-card transaction. For bank debit cards, Apple collects a half-cent per purchase, according to people familiar with the service.

 

Visa unveiled its new tokenization service on May 28 the same day that Google announced Android Pay and said it had signed on to Visa’s service. Others will likely follow, because of the combined influence of Visa and MasterCard.

 

http://www.wsj.com/article_email/google-loses-key-mobile-payment-feesgoogle-misses-out-on-apples-slice-of-mobile-transactions-1433546638-lMyQjAxMTE1NjA2NTYwMzU2Wj

Edited June 6, 2015 by colonel_mortis
Made it night theme friendly

[Norman_the_Owl]

NFC payments have been around for a while. don't talk like apple invented them. It was actually google who started it, in android kitkat...

 

Edit: My member title is very accurate today

[bogus]

Like banks and market chains would let either apple or Google get away with it...

[Kurosaki Isshin]

Google is.. well.. Google.

So they missed a slice of the pie. not like it matters when they own the data coming out of the pie -_-'

[Bensemus]

NFC payments have been around for a while. don't talk like apple invented them. It was actually google who started it, in android kitkat...

 

Edit: My member title is very accurate today

That made me laugh

[spartaman64]

i dont think google takes a cut of NFC payment anyways unlike apple. at least there isnt from the walgreens purchases i made

[Agent181]

Google is.. well.. Google.

So they missed a slice of the pie. not like it matters when they own the data coming out of the pie -_-'

they own the data the pie and they watch you eating the pie

[alexstahp]

i dont think google takes a cut of NFC payment anyways unlike apple. at least there isnt from the walgreens purchases i made

 

That's the point of this post, it's talking about the fact that because google waited for apple to come out and do there own nfc payments google missed out on the potential to get a cut

[Victorious Secret]

That's the point of this post, it's talking about the fact that because google waited for apple to come out and do there own nfc payments google missed out on the potential to get a cut

 

To be fair, Google gets their own cut by knowing what you purchased. This is Google. How would they possibly give up insight into what people are buying in their daily life and then gearing ads to fit those areas. 

[Trik'Stari]

To be fair, Google gets their own cut by knowing what you purchased. This is Google. How would they possibly give up insight into what people are buying in their daily life and then gearing ads to fit those areas. 

But I haven't purchased half of the things google advertises to me, let alone afford 90% of them.

 

Especially *insert mail order bride from random country* as well as stock in apple, which is currently what I'm seeing under your original post lol

[spartaman64]

That's the point of this post, it's talking about the fact that because google waited for apple to come out and do there own nfc payments google missed out on the potential to get a cut

google had nfc pay before apple did and google didnt take a cut and its unlikely they are going to take a cut when android pay comes out

[Misanthrope]

Actually my thought is that the banks probably made the deal with Apple because they knew they would have to give up a lesser cut overall if you go by raw number market share. I don't think Apple asked first necessarily.

[cesrai]

But I haven't purchased half of the things google advertises to me, let alone afford 90% of them.

 

Especially *insert mail order bride from random country* as well as stock in apple, which is currently what I'm seeing under your original post lol

So true.

[RexinOridle]

NFC payment was in Japan and Korea a century age. Maybe I wen a tittle too far, but the point is they had it before.

[beebskadoo]

Google wallet has been around for quite some time OP

 

It lacks some of the implementations that Apple Pay has but will sort itself out once Android pay launches with the M release this year.