The saga of mobile payments continues.
I woke up this morning to find my LG G2 had an update ready to install. I couldn’t find any changelog for what was being updated or what bug fixes were included, but I went ahead and ran it. Immediately following the procedure my phone had a new notification from Google Wallet.
Tap & Pay functionality is now supported on my LG G2.
Google tried to shake up mobile payments almost two years ago introducing the idea of NFC backed mobile payments. The first devices supporting it were the Nexus line, for me personally, the Nexus 7 tablet. I tried it out exactly once, as trying to pay at CVS with a mini-tablet tethered to my phone’s data connection was cumbersome to say the least.
Since then we’ve seen something of a feud over mobile transactions between Google and various carriers. Verizon, T-Mobile, and AT&T worked together on creating the ISIS platform, which is slowly starting to find support on the phones sold by those companies. Over this time period they largely blocked any momentum for Tap & Pay by banning Google Wallet on the devices they sold.
Is it too late for NFC?
Almost two years where consumers could have been getting used to the idea and building an infrastructure were essentially lost.
Recently it was announced that Best Buy and 7-Eleven would be getting rid of their NFC supported mobile payment machines. Credit card terminals which are more expensive to install, require more cashier training, and often can result in higher fees from banks.
More competition in this space is looming from the Merchant Consumer Exchange. Like Best Buy and 7-Eleven, other companies such as Target, CVS, and Sears are a part of the MCX and are considering their own payment protocol based on barcodes like the ones used at Starbucks. A system like this could gain traction quickly as NFC payments require a special radio which the iPhone lacks, but barcodes only need to display on your screen.
The knowledge of this outside competition might be just the pressure needed to ease some of the entrenched cold war between Google and the carriers, but their squabble has cost them a considerable lead.
Are you currently using an NFC payment system like ISIS or Wallet? Are you more likely to try one in the future? Leave us a comment below!