Google Inc (NASDAQ:GOOGL) has made a new move to get ahead of Apple Inc. (NASDAQ:AAPL)’s Apple Pay, as it acquired the technology from mobile payment service provider Softcard, for integration with Google Wallet. A CNBC article reported on the news and discussed the new deal that Google Inc (NASDAQ:GOOGL) has made with Softcard, which could give the Google Wallet an edge over Apple Inc. (NASDAQ:AAPL)’s Apple Pay.
“So it’s a significant deal for Google, there’s no doubt about it. Since Apple launched Apple Pay, they have distribution power with Apple Pay being pre-installed on all new iPhones and being part of the onboarding process for all new iPhones, so Google needed to make a move in this space and inking this deal with the major carriers […],” said Jag Bath, RetailMeNot.com Senior Vice President of Product.
Google Inc (NASDAQ:GOOGL)’s new deal with Softcard will provide an ease of use to its customers for Google Wallet, as it would be pre-installed in Verizon Communications Inc. (NYSE:VZ)’s Verizon Wireless, AT&T Inc. (NYSE:T) and T-Mobile US Inc (NYSE:TMUS), making it quite easy for users to get started with Google Wallet. Apple Inc. (NASDAQ:AAPL) has already launched Apple Pay which is pre-installed in the new iPhones, so to compete with Apple Inc. (NASDAQ:AAPL) in this area, Google Inc (NASDAQ:GOOGL) has started providing its customers with a pre-installed Google Wallet in new Android devices.
Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) may be competing with each other but when it comes to mobile payment services, PayPal, Inc. is the King of the Ring. Being a major player in mobile payment services, PayPal, Inc. is currently dominating the market with $46 billion in mobile payments last year and according to research by Investment Technology Group, it accounted for 78% of all digital payment dollars in November, 2014.
“[…] Security is definitely a concern there, there’s no doubt about it. With touch ID from Apple, that definitely I think puts consumers’ mind at rest where your phone cannot simply be taken and used in store, you have to actually touch the phone and it has to recognize who you are […],” Bath said.
If you talk about security features, the Apple Inc. (NASDAQ:AAPL) stays ahead in this competition. Consumers are very much conscious about security features because of recent news headlines about cyber security threats and it could be a tougher challenge for Google Inc (NASDAQ:GOOGL) to convince its customers that they are getting more secure services from Google than others in the market, so that more and more people will place their trust (and their money) in Google Wallet for their payments.
This new deal with wireless carriers could be a great opportunity for Google Inc (NASDAQ:GOOGL) and a new challenge to Apple Inc. (NASDAQ:AAPL), but in the race for better mobile payment services and the race to convince more people to use them, Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) will have to prove they can be trusted to securely store payments and process mobile payments, and that will be a long, but potentially very lucrative process.
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