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Tech giants face up to payments
When comparing the payment strategies of tech giants
Google Inc., Apple Inc. and Facebook, Paull views the
latter two competitors as having greater potential than
Google. Facebook and Apple (via iTunes) already have
established financial relationships with millions of
users who have attached funding mechanisms – debit
and credit cards – to their social media accounts. As
primarily a search engine, Google is playing catch up
to persuade its users to set up Google Wallet accounts.
In May 2013, Google launched its own P2P network by
integrating Google Wallet with Gmail accounts, so that
wallet users can facilitate money transfers via email.
More recently, reports surfaced indicating Google plans
to extend Google Wallet to its wearable technology
solution Google Glass. But the success of such ventures
rests on users' confidence with Google as a financial
service provider.
"[Google Wallet] hasn't done really well," Paull said.
"They have a more challenging job to do to get
consumers feeling comfortable, secure and incented to
start attaching payment credentials to a Google Wallet
or Gmail account."
Paull noted that Apple's reach is limited to consumers
who have iPhones and iPads, whereas Facebook is not
tied to any branded mobile devices. "[Facebook] is a
very ubiquitous offering," he said. "It could apply to
anybody with any type of phone or tablet. … If they can
incentivize more consumers on that trend, I think P2P
payments is a logical way to start."
Eventually, tech companies like Facebook will need to
partner with payment businesses to expand into the
merchant-centric brick-and-mortar world, according
to Paull. He believes ROAM, a business unit of POS
terminal manufacturer Ingenico SA, would be an ideal
partner for Facebook. "If they extend what they do from
P2P payments to more of a wallet purchasing capability
for their users, then to me the next step could very easily
be an extension of that into servicing the merchant
side," he said.
When comparing
the payment strategies of tech
giants Google Inc., Apple Inc.
and Facebook, Paull views
the latter two competitors as
having greater potential than
Google.
14
Tech giants face up to payments
When comparing the payment strategies of tech giants
Google Inc., Apple Inc. and Facebook, Paull views the
latter two competitors as having greater potential than
Google. Facebook and Apple (via iTunes) already have
established financial relationships with millions of
users who have attached funding mechanisms – debit
and credit cards – to their social media accounts. As
primarily a search engine, Google is playing catch up
to persuade its users to set up Google Wallet accounts.
In May 2013, Google launched its own P2P network by
integrating Google Wallet with Gmail accounts, so that
wallet users can facilitate money transfers via email.
More recently, reports surfaced indicating Google plans
to extend Google Wallet to its wearable technology
solution Google Glass. But the success of such ventures
rests on users' confidence with Google as a financial
service provider.
"[Google Wallet] hasn't done really well," Paull said.
"They have a more challenging job to do to get
consumers feeling comfortable, secure and incented to
start attaching payment credentials to a Google Wallet
or Gmail account."
Paull noted that Apple's reach is limited to consumers
who have iPhones and iPads, whereas Facebook is not
tied to any branded mobile devices. "[Facebook] is a
very ubiquitous offering," he said. "It could apply to
anybody with any type of phone or tablet. … If they can
incentivize more consumers on that trend, I think P2P
payments is a logical way to start."
Eventually, tech companies like Facebook will need to
partner with payment businesses to expand into the
merchant-centric brick-and-mortar world, according
to Paull. He believes ROAM, a business unit of POS
terminal manufacturer Ingenico SA, would be an ideal
partner for Facebook. "If they extend what they do from
P2P payments to more of a wallet purchasing capability
for their users, then to me the next step could very easily
be an extension of that into servicing the merchant
side," he said.
When comparing
the payment strategies of tech
giants Google Inc., Apple Inc.
and Facebook, Paull views
the latter two competitors as
having greater potential than
Google.
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