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Innovation in Financial Services

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

Google takes its wallet to the cloud

22 August 2012  |  5731 views  |  1

Google is trying to inject new life into its mobile wallet platform by launching a cloud-based version of the app that can be linked to Visa, American Express and Discover cards. Will it be enough?


When it was launched in 2011,  Google Wallet was presented as the ultimate
service that would take the NFC mobile payments revolution by surprise but its
launch and take up rate have proven disappointing.

Why is that? At the core of the issue, if one excludes some of the security
concerns, Google wallet was only launched through three initial partners MasterCard,Citi and Sprint.

Google has now addressed that with a new cloud-based version of the Google Wallet app that supports all credit and debit cards from Visa, MasterCard, American Express, and Discover.

Card details are stored by the app on Google's servers, not on the handset,
with a wallet ID - a virtual MasterCard - on the phone's secure storage area
used to enable transactions at the point of sale.

Google sees this new approach as a way of speeding up the integration process
for banks so their cards can be added to the Wallet app in just a few weeks. Additionally, the cloud brings a new security feature that allows users to remotely disable their mobile wallet on a lost phone.

The wallet, says Google, can be used to make purchases in the Google Play
store, online using Google Checkout and in instore at more than 200,000

However, despite widening the service out beyond just MasterCard, the next
hurdle for the cloud-based version of Google wallet still only works with six
handsets from Sprint and Virgin Mobile as well as the Nexus 7 tablet.

This could prove a major disadvantage when the telco-owned Isis consortium
launches its mobile NFC wallet - with all the card firms on board - later this

TagsPaymentsRetail banking

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 24 August, 2012, 20:58

Just to clarify:

  1. Google Checkout is gone. It's now Google Wallet - Online, which is applicable for Web and Mobile. 
  2. Erstwhile Google Wallet is now Google Wallet - In-store. 
  3. For the Online variant, it was always possible to add any card. By cardholder. Without any involvement of card issuing bank.
  4. All limitations and new developments - NFC, Citi, MasterCard, cloud storage, speedening of integration with banks, etc. - are only applicable for the In-store variant of GW.

Since the Online variant of GW has been free of all the limitations afflicting the In-store variant, it would be interesting to know how many subscribers it has managed to attract. And compare that figure with iTunes - only available online - which has around 200M cards on file in order to get a feel for the popularity of Google Wallet.

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