Menu
INSIGHT: Why Android Pay will mutate Google's payments strategy

INSIGHT: Why Android Pay will mutate Google's payments strategy

"Upbeat projections for Android Pay are in sharp contrast to the current position of Google Wallet, which, after four years, is still largely confined to the US..."

Google has followed up its recent Softcard deal with the announcement of Android Pay during a keynote session at Mobile World Congress, but what does it mean for the payments industry?

"Android Pay is designed as an API framework that will enable third parties to leverage its capabilities to enhance their own m-commerce applications for Android devices," explains Eden Zoller, research analyst, Ovum.

"This take on m-payments is different to consumer-facing services such as Apple Pay, Samsung Pay, and indeed the existing Google Wallet – Google is positioning Android Pay squarely as a platform."

However, Zoller says Android Pay does have some similarities with the consumer services, including the use of NFC for proximity payments, card tokenization, and biometrics for authentication.

"Google has suggested that Android Pay would be a particularly good m-payments platform for application developers in emerging markets such as China and Africa," she adds.

"This makes sense, given the growing base of Android smartphones in emerging markets."

According to Zoller, the upbeat projections for Android Pay are in sharp contrast to the current position of Google Wallet, which, after four years, is still largely confined to the US, where its installed base is building slowly.

Google says it will continue with Google Wallet, which Ovum presumes will in turn use Android Pay’s API framework.

However, it remains to be seen whether this and the anticipated benefits of Google’s recent acquisition of Softcard will be enough to give Google Wallet the boost it needs.

"The string of recent m-payment announcements from Google is no surprise," Zoller adds.

"The m-payments market is becoming highly competitive. Apple Pay has raised the stakes, forcing its rivals to respond, and the launch of Samsung Pay also poses a challenge."

Unfortunately, Zoller believes Google’s m-payments strategy is becoming "rather muddy" just when it needs to be crystal clear.

So much so that it needs to turn the situation around and achieve the clarity it needs at its forthcoming developer conference in May.


Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags ApplesamsungGoogleovumSamsung PayAndroidAndroid PayApple Walletmobile

Featured

Slideshows

Kiwi channel comes together for another round of After Hours

Kiwi channel comes together for another round of After Hours

The channel came together for another round of After Hours, with a bumper crowd of distributors, vendors and partners descending on The Jefferson in Auckland. Photos by Maria Stefina.​

Kiwi channel comes together for another round of After Hours
Consegna comes to town with AWS cloud offerings launch in Auckland

Consegna comes to town with AWS cloud offerings launch in Auckland

Emerging start-up Consegna has officially launched its cloud offerings in the New Zealand market, through a kick-off event held at Seafarers Building in Auckland.​ Founded in June 2016, the Auckland-based business is backed by AWS and supported by a global team of cloud specialists, leveraging global managed services partnerships with Rackspace locally.

Consegna comes to town with AWS cloud offerings launch in Auckland
Veritas honours top performing trans-Tasman partners

Veritas honours top performing trans-Tasman partners

Veritas honoured its top performing partners across the channel in Australia and New Zealand, recognising innovation and excellence on both sides of the Tasman. Revealed under the Vivid lights in Sydney, Intalock claimed the coveted Partner of the Year 2017 (Pacific) award, with Data#3 acknowledged for 12 months of strong growth across the market. Meanwhile, Datacom took home the New Zealand honours, with Global Storage and Insentra winning service provider and consulting awards respectively. Dicker Data was recognised as the standout distributor of the year, while Hitachi Data Systems claimed the alliance partner award. Photos by Bob Seary.

Veritas honours top performing trans-Tasman partners
Show Comments