Google may offer telcos share of NFC revenue
March 22, 2012
Google is reportedly considering offering NFC revenue sharing deals, initially to US mobile operators, in a bid to foster adoption of its Google Wallet service.
The search giant is weighing a revamp of the Google Wallet system due to slow adoption, sources close to the project told Bloomberg. Two key project managers have also recently left the company.
Google has struggled to make headway with Google Wallet, due to the relative scarcity of NFC handsets in use and the presence of competing services.
Verizon Wireless and AT&T - the two largest carriers in the US – and T-Mobile USA all joined up in 2010 to establish a joint venture to produce the competing ISIS payment system. The companies have previously announced plans to invest hundreds of millions of dollars into the venture.
Operators currently have no financial incentive to support Google Wallet, and according to the insiders Google is considering giving them a reason to.
But Google is said to also be considering sidestepping operators altogether, and using their own servers for authentication.
The downside for Google with this approach is it might require additional hardware be deployed in in-store NFC payment terminals.
Phil Marshall / Tolaga Research
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