Slow adoption and a lukewarm reception from carriers and retailers has caused Google to rethink its strategy for Google Wallet. The company tells Bloomberg that it is pleased with Google Wallet’s progress so far. But with only one partner carrier in the US and two capable phones in the market, the company has a long way to go before it can boost demand and effectively make its mark in mCommerce.
As such, Bloomberg reports Google is weighing whether or not to cut carriers like Verizon Wireless and AT&T in on the action. A revenue sharing deal would give carriers a new incentive to bring the service on board, but AT&T, T-Mobile USA and Verizon Wireless are already ramping up their own service called ISIS. Sprint Nextel, the only major carrier not involved in the ISIS venture, is also the only carrier in Google’s Wallet, if you will.
Anywhere from 50,000 to 100,000 people have downloaded the Google Wallet app, but a low percentage of them are actually using it, Rick Oglesby, an analyst at Aite Group, tells Bloomberg. Juniper Research projects mobile-payment transactions will exceed $170bn by 2015, up from nearly $60bn last year.
That’s not to say Google and plenty of other newcomers to the finance space will find it easy to break into the world of money. The new report on Google Wallet comes barely a week after Nokia announced plans to shut down Nokia Money.