2 Nov 2012
Android Police published a story on Google’s forthcoming plastic pilot yesterday.
What do we know? Very little beyond the photo above.. If the story does pan out, it could be a tremendous win for retailers, consumers and even banks. The only loosers? NFC and carrier led payment initiatives.
- Everything that Wallet 2.0 does today on NFC, only now you can do it with a swipe of plastic
- In today’s NFC wallet, consumers scroll through their list of cards to choose the plastic they want. The picture from android police outlines how this will be the same for physical plastic “want to pay with a different card? Just open the app and choose another way to pay.. just as you can today only now there is no NFC dependency.
- New for consumers? well a cool looking black card.. all of your tickets, incentives, coupons in one place (in the cloud). Don’t worry about loosing your offer e-mails.. Google also has POS integration working at 10+ grocers so your coupons automatically come off on the paper reciept.. and in the cloud. No one else has payment and incentives put together like this.
- New for retailers? Integrated advertising.. look at performance of local search, adwords, offers, coupons across google properties.
Business Strategy Changes
- Expand beyond NFC phones to any Android handset (and IOS according to article)
- Allow offers to be redeemed on plastic
- Allow Google to compete for payments business with retailers and consortiums (ie MCX)
- One wallet for eCommerce, mCommerce, and a plastic card for POS. This is exactly what PayPal is doing with its own physical plastic, and American Express plans to do in SERVE 2.0.
- Expand Google wallet into IOS? That will certainly crimp Apple’s plans here. Google will establish itself as both a payment network AND and Ad network
- No more TSMs. Google will see the transaction data for every card used in the wallet. Just as Amazon, Apple, PayPal see every transaction for eCommerce.
My guess is that Google will proceed with a small scale pilot, just as it did with Wallet 1.0.
Why do retailers win? (see related blog)
Google will be in a position to drive the lowest cost payment (perhaps better than 0bps MDR) AND allow retailers to drive marketing to their consumers online and via mobile.
Why do consumers win?
With Google, use any card you want, use any phone you want … consumers get to CHOOSE. (In ISIS the only card you can load today is a Visa credit card)
Google sorry that some idiot spoiled your release plans.. but this is super stuff… I always wanted a black card.
My biggest questions?
- Will Google integrate a direct ACH connection.
- Who is the network?