On April 14, 2014, the essential 'Tap and Pay' function in Google Wallet App stopped working on all smartphones that were not running its latest version of Android called 'Kit Kat.' On that day, Google Wallet deactivated many of its already scarce user population with no transition period. Why?
It has been more than 2 1/2 years since the Google Wallet launched, yet Google Wallet can function properly on a maximum of about 7% of the smartphones in the United States because it relies on a security technology that is owned by the mobile network operators, and only one of these operators (Sprint) has agreed to work with Google Wallet. Verizon, AT&T have simply blocked Google Wallet from their networks. To make matters worse, the communication technology that is also relied on by Google Wallet is being blocked by Apple on all iPhones. With enemies like Verizon, AT&T, and Apple, how can Google Wallet possibly succeed? The answer lies in a technology that was created only three years ago in Austin, Texas.
Read this whitepaper to learn about this new technology, and how it may dramatically accelerate Google Wallet.
Table of Contents
Executive Summary Introduction To The Predicate Industries Smart Cards Mobile Telecommunications How the Mobile Operators Challenged Google What is ISIS? Apple Blocks Google, Isis, And Everyone How Google is combating the problems? Cloud-based payments Physical card P2P Payments Apple App - No Payments Common Items Between Google Wallet And Isis Host Card Emulation Saves Google Wallet? What is Host Card Emulation? Summary and Conclusion
Tables and Figures
Figure 1: Worldwide Smartcard Sales Figure 2: Example of Initiation of a Smartcard Figure 3: Example Of Permission Request In Direct Method Of Authentication Figure 4: Example of Access Granted by Authentication Server Figure 5: Example of Challenge Question Authentication Figure 6: Initialization of a SIM Card in a Mobile Phone Using the Secure Element Figure 7: Authentication of a Mobile Phone Using a SIM Card Figure 8: Multi-Factor Authentication in Voice and Text Data Figure 10: How a TSM Functions Figure 11: Mobile Network Operators and TSMs Involved in in Google Wallet 1.0 and 1.5 Figure 12: Market Share on Google Wallet 1.0 and 1.5 Mobile Operator Penetration Figure 13: Diagram Of Isis Mobile Wallet Presented For Payment At POS Figure 14: Diagram of Isis NFC case for iPhone 5SFigure 15: Apple iOS Market Share vs Android and Others in US, January 2014 Figure 16: Worldwide Apple iOS Market Share vs Android and Others, Calendar Year 2013 Figure 17: Photo of Physical Google Wallet Credit Card Figure 18: Diagram of Actual Menu on the Google Wallet App on Apple's iPhone 5S Figure 19: Sample of Mail Insert sent to AmEX's Serve Customers in January, 2014 Figure 20: Distribution Of Google Wallet Loyalty Programs by Industry
Based on primary research and data, Google Wallet 2.0 is essential for:
Mobile network operator executives Financial and payment industry executives involved in mobile Technology and platform providers Innovators in mobile payments and mobile commerce Merchants and representatives of merchant associations Consumer association representatives Regulator and government representatives involved in payments systems Investors Analysts and consultants

-- Do you use a mobile phone?
-- Do you use credit cards or debit cards?
If so, you need to know that a revolution has started that will impact you sooner than you think, and this book will tell you - the consumer - what you need to know now.
The reality is that a torrent of advertising and promotional marketing is heading your way to try to convince you to use new services on your SmartPhone at retail stores. Perhaps you have already seen some, or signed up for some.
These new services may seem novel, but this revolution is far more significant than that. At stake is the future of the credit card system that moves over $11 Trillion per year from consumers to retailers. Some of the largest companies in the world think this system should change, starting now. Other, equally large companies think everything should stay the same.
These two sides are already lining up on a battlefield, with you standing in the middle. And, if you are not careful, the first casualty will be your privacy.
Find out what is happening, how it may effect you, and what you can do about it. Read The SmartPhone Wallet - Understanding the Disruption Ahead.
PRAISE FOR THE SMARTPHONE WALLET:
"David Schropfer's consumer-focused look at the emergence of mobile payments is unique and refreshing. At Morris Advisors, we believe the keys to the mobile commerce kingdom are not in the hands of banks or wireless carriers. Consumers and merchants are ultimately the most critical stakeholders. Mr. Schropfer clearly articulates for us the consumer value proposition for mobile payments. I particularly enjoyed his thought provoking description of how wireless carriers could potentially deliver enhanced value for consumers while bypassing some of the incumbent payments industry players. A great read."
Andrew B. Morris
CEO & Founder, Morris Advisors, Inc.
Chair, Alternative Payments Committee, National Retail Federation's Mobile Retailing Initiative
"The SmartPhone Wallet was a great read. The writing style made it an easy read. The content and perspective gave some very valuable insight into future trends of mobile payments. I can't wait for the next book in this series."
-Meg Collin
Global Telecom Procurement and Sourcing Expert
"You're bombarded with information about mobile financial services that either expect you to know it all or treat you like a child. In other words, if you are like most of us then The SmartPhone Wallet is a book for you. The book will take you through the basics of payments, mobile networks, the intersection where they meet, and what this convergence can mean to you. A light yet substantive read, in the Scientific American style, will educate you enough so that you can draw your own conclusions and make your own decisions about the soon-to-be-offered products and services. Learn the history, the present, the trends; what is important and what is not. Know the risks, the costs, the business side and the technical side - enough to benefit you and help others to make the right decisions."
-Mirek Kula
Co-Founder and CEO, REC-ORDER, LLC
"Just as credit and debit cards have largely displaced cash and checks, mobile wallets will surely displace physical payment tenders. The adoption of mobile wallets will be driven by consumer convenience and value. In "The Smartphone Wallet" David Schropfer outlines the background and evolving shifts in technology, financial services, and consumer preferences that converge to provide the mobile wallet, the next generation of electronic payments. This is a good read for anyone in the payments ecosystem."
-Anand Goel
Optimized Payments Consulting