Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

M-Commerce Space Gets Crowded as Google Wallet Faces New Competitors


A spate of companies such as Visa and Vodafone are jumping in, leaving Google Wallet behind.

Smartphones relieved our pockets and briefcases of the clutter of a separate MP3 player, cell phone, palm computer, phonebook, notebook, digital camera, video camera, portable video game, Zagat guide, novel, and newspaper. Soon, you might even be able to leave the wallet at home as well.

The mobile wallet, or "m-commerce," is gaining traction, and competitors to Google's (GOOG) Google Wallet are lining up. Visa (V) and Vodafone (VOD) just became the latest to join the fray. The two companies announced a joint venture this week that will allow Vodafone users (initially only in Europe) to make purchases with their phones.

Isis, a joint venture of AT&T (T), Verizon (VZ), and T-Mobile (DTEGY.PK), announced a partnership with Chase (JPM), Barclaycard (BCS), and Capital One (COF) at the Mobile World Congress in Barcelona yesterday. Ericsson (ERIC) also announced an m-commerce partnership with Western Union (WU) at the convention.

All of these players adopting the mobile wallet at the same time leave little room left for Google to leverage up its first-mover advantage. Google Wallet is innovative and well-liked, but woefully limited. It's only available on Sprint (S) Android smartphones, and only for Citi (C) MasterCard (MA) customers. With such a small customer base using Google Wallet, only a smattering of retailers supported the technology. Now that all of these other carriers and payment processors are jumping on the bandwagon, you can bet that you will be seeing near-field communication readers like MasterCard's PayPass in most stores pretty soon.

With support from all of these payment processors, it's more likely that near-field communication, or NFC, will become more pervasive. Samsung, HTC, Huawei, and Research In Motion (RIMM) are all including NFC technology on their phones.

Mobile payment will obviate the need for loyalty cards and coupons. Another potential area where this technology can be very useful is in transport systems. Japanese commuters have been boarding trains by merely tapping their mobile phones on turnstile-mounted card readers for years. New York's Transit Authority has already dabbled with mobile Metrocards. When all subways and buses have the PayPass reader enabled, it could save riders the $52 million that they lose every year on unused and lost Metrocards and lower the cost of fare collection.

Isis' and Visa's are both expected to be available as early as this summer.

Twitter: @vincent_trivett
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Featured Videos