Google Wallet: Smaller, Impulse Buys are Likely Sweet Spot

Google Wallet has launched with a rather impressive set of partners spanning the key retail, finance and mobile ecosystems, each of which is necessary.

The leveraging of the MasterCard "PayPass" network is important, as it brings potential access to more than 124,000 merchants in United States.

But the partnerships with Verifone, Hypercom and perhaps others will put Google Wallet in next-generation point of sale terminals over time. But it is the immediate installed base of terminals that is most important right now.

Starbucks signed up so many users for its mobile payment system in part because it was able to use the entire installed base of POS terminals, did not have to create or recreate a payment system or deal too much with the number of smart phones able to use the network.

One would not be surprised if the "killer" transactions turn out to be relatively small purchases, many of an impulse nature. Walgreens and Subway provide examples. People will probably spend a relatively small amount per transaction, but might conduct transactions relatively frequently.

Google Wallet: Handicapping why it will (and won't) work | ZDNet

Google Wallet Highlights a Business Model

Google's new mobile wallet illustrates the expected potential of local and mobile advertising, promotion, loyalty offers and "offers" as a full-blown revenue model in the mobile payments space, having nothing to do directly with the revenue earned by card issuers from the actual payment transactions.

Google says its service will start out with "daily deals" but will expand into things like check-in offers. Though much attention remains focused on new "payments" platforms, the local advertising, mobile advertising and promotion businesses are seen by Google as the opportunities it wants to focus upon, logically enough, given its advertising revenue model.

Hello Google Wallet

Google Launches Mobile Wallet

Google has launched its "SingleTap" mobile wallet service, working with Citi, MasterCard, First Data and Sprint. Google suggests one of the advantages, aside from reducing the need to carry multiple loyalty program cards and credentials, are savings and offers of various types.

Google Wallet is a key part of Google's strategy for enhancing shopping for both businesses and consumers. "It’s aimed at making it easier for you to pay for and save on the goods you want, while giving merchants more ways to offer coupons and loyalty programs to customers, as well as bridging the gap between online and offline commerce," Google says. See http://www.google.com/wallet/.

At first, Google Wallet will support both Citi MasterCard and a Google Prepaid Card, which you’ll be able to fund with almost any payment card.

Users will have to use a Google Nexus S at first, since that is the only Android device that natively supports near field communications. The service also will be available in a limited number of cities.



Google Wallet is built to work with the fast growing MasterCard PayPass network—a merchant point of sale service that enables consumers to tap to pay. As a result, Google Wallet will immediately be accepted at more than 124,000 PayPass-enabled merchants nationally and more than 311,000 globally.

Google is also working with point of sale systems companies and top retail brands to create a new SingleTap shopping experience. Consumers will be able to pay for an item using a credit card or gift card, redeem promotions and earn loyalty points—all with a single tap of their Google Wallet. Google is working with VeriFone, Hypercom, Ingenico, VIVOTech and others to develop these next generation point of sale systems.

Retailers participating in the new SingleTap experience include: American Eagle Outfitters, Bloomingdale’s, Champs Sports, The Container Store, Duane Reade, Einstein Bros. Bagels, Foot Locker, Guess, Jamba Juice, Macy’s, Noah's Bagels, Peet’s Coffee & Tea, RadioShack, Subway, Toys“R”Us and Walgreens.

“Google Wallet allows us to harness the power of mobile technology to enhance our in-store shopping experience and helps bridge the gap between our online and in-store consumer interactions,” said Martine Reardon, executive vice-president of marketing and advertising, Macy's. “Macy's is always looking for cutting-edge technology that will deliver value and engage our customers in personal ways. Google Wallet delivers this unique interaction across channels.”
The first Google Wallet field tests are focused in New York and San Francisco, where many retailers, Coca-Cola vending machines and even taxis are enabled, including major outlets such as CVS, Jack in the Box, Sports Authority and Sunoco. First Data, a global leader in electronic commerce and payment processing, is actively recruiting thousands of new merchants in these areas and will soon expand those efforts to deploy more contactless merchant terminals across the country.
Google has also been testing a variety of consumer deals that can range from a 20-percent discount on a new pair of boots discovered on a Google search advertisement; to a $5 off check-in offer received upon entering a store; to a "deal of the day" offering a $20 lunch for $10 at a local restaurant.

At most stores you will be able to use Google Wallet to show your offer at the register, where the cashier will either scan it or manually type it in. At participating Google SingleTap merchants, you will be able to pay and redeem an offer with one tap of your mobile device.

Because Google Wallet is a mobile app, it will eventually be able to do more than a regular wallet ever could, but without the bulk, Google says, SingleTap will start with offers, loyalty and gift cards but some day items like receipts, boarding passes and tickets will all be seamlessly synced to your Google Wallet.

Google Wallet will work best if it’s an open commerce ecosystem so you will be able to carry all the credit cards, offers, loyalty and gift cards you choose—and eventually much more. To this end, Google Wallet will make it possible to integrate numerous types of partners, and Google, Citi, MasterCard, First Data and Sprint invite the banking community, mobile carriers, handset manufacturers, merchants and others to work with Google Wallet.

Official Google Blog: Coming soon: make your phone your wallet

Google Might Agree to Compensating Access Providers

Way back when, when access providers began complaining in public that huge application providers such as Google were "riding pipes for free," one concern application providers have had is that they might wind up having to pay the access providers fees of some sort to reach customers. That is the business concern behind much, if not most of the support for "network neutrality," on the part of application providers.

But government pressure often goes a long way towards convincing telecom and video ecosystem participants that they need to solve a problem before the government tries to solve it for them. So it is that French regulators are putting pressure on Google that could ultimately lead to Google, and then other application providers, compensating mobile network operators for use of their bandwidth.

A compromise can be found between operators urging direct compensation for investment in faster networks and app providers,” France Telecom SA Chief Executive Officer Stephane Richard says. The threat is serious enough that Google chairman Eric Schmidt recently has been saying Google and access providers are "co-dependent."

To be sure, Google would rather not encounter a new cost of doing business, were it to be required to help participate in some way in assisting access providers to keep expanding bandwidth. But the French action suggests serious pressure is mounting, and Google might not want to have governmental authorities make those rules.

The changes show that the broadband business remains dynamic, but also shows the increasing need Google has to work with and shape regulatory thinking. Google isn't a common carrier, but it is part of a common carrier ecosystem, and that means paying attention to regulators who can shape, define or eliminate revenue models.

Google Might Agree to Compensating Access Providers

Satellite Providers Argue for Inclusion in Broadband Funds

There is nothing quite as contentious as any proposed changes to current intercarrier compensation or universal service programs, even though many would argue the programs no longer work very well. 

The U.S. “Connect America Fund” represents billions of dollars worth of support for broadband suppliers in unserved and underserved rural areas. As you would expect, potential suppliers are going to fight over those funds, including the matter of eligibility. One clear fight is between some fixed line providers on one hand and wireless providers of several types, including satellite providers, mobile providers and fixed wireless providers as well. But there also is contention between fixed line providers. 

Independent rural telcos have complained that a disproportionate amount of those underserved areas are served by AT&T and Verizon Communications, preferring that funds be earmarked only for smaller and independent companies and cooperatives. Satellite providers in the United States and Europe think they should be eligible providers. 

Separately, European satellite broadband providers are lobbying the European Commission to provide public funding for the rollout of satellite broadband across Europe.

At a conference held by the Association of Telecommunications and Value-Added Service Providers, industry stakeholders said that satellite was the only form of broadband provision to offer universal coverage, patching the holes left by other solutions, such as fixed networks and mobile broadband.

In the United States, Dish Network Corp., Hughes Network Systems, ViaSat and WildBlue Communications (ViaSat) argue they should be allowed to apply for Connect America Fund projects.

Google Maps Adds D.C. Transit Info

Transit directions in Google Maps for Android have been available for two years, including directions for 440 transit systems. Washington, D.C. is the latest city to be added.

Each page now includes a list of upcoming scheduled departures for different lines, all the transit lines serving the station, and links to nearby transit stations.

Google LatLong

Dump Steve Ballmer?

David Einhorn, hedge fund manager for Greenlight Capital, called for the Microsoft chief to step down on Wednesday during a speech at an investor conference. Ballmer's presence is the biggest drag on Microsoft's stock, according to Einhorn. The high-profile investor also blamed Ballmer for wasting billions on research and referred to Bing as a 'sinkhole,' according to The New York Times. Microsoft's stock is widely considered undervalued at under 10 times its expected earnings, according to Reuters.

Calls to rid Ballmer from Microsoft's helm are nothing new.

Dumping Steve Ballmer: Microsoft's Pros and Cons