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