Pyramid Point: Google Wants To Be In Your Wallet Too

CAMBRIDGE, Mass., Oct. 27, 2011 /PRNewswire/ -- Mobile payments are developing at a rapid pace as members of the value chain make a push to bring their proposals to the table. Google Wallet, however, aims to bundle it all in one place, according to a new research note from Jose Magana, Pyramid's Practice Leader on Mobile Payments and Banking.

Google Wallet has all the elements of the value chain: a mobile operator (Sprint), a bank (Citibank), a payment vendor (MasterCard), a technology (NFC) and a handset (in this case, Google brought its Nexus S 4G device). "By setting a role for each player, Google is trying to address a key issue in mobile payments: more partners, means more fees and fewer incentives to break the current offline model," says Jose Magana. Google would benefit from providing users with coupons and deals, thus giving them another reason to choose its Android platform over others and maintaining Google's position in the mobile space as a leading search provider. "By the same token, Groupon has built a multimillion business around deals, so there is interesting revenue to be made," he adds.

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SOURCE Pyramid Research

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