Google Wallet usage surges after much-hyped Apple Pay launch - report

Posted:
in iPhone edited November 2014
The highly successful launch of Apple Pay on the iPhone 6 and iPhone 6 Plus has helped to grow the long-established Google Wallet service, as both rely on the same near-field communication technology for tap-to-pay functions.



NFC-based terminals compatible with Google Wallet have been in stores for years, but haven't seen much adoption from Android users. But with Apple Pay entering the scene, and offering compatibility with many of those existing NFC terminals, Google Wallet has seen considerable growth in recent weeks and months.

Citing an unnamed source, Ars Technica reported on Wednesday that Google Wallet transactions have grown by 50 percent in recent months. In addition, new users to Google Wallet are said to have nearly doubled.

Google Wallet has been around since 2011, but has failed to gain mainstream adoption from Android users. But the figures reported Wednesday would suggest that the launch of Apple Pay has helped drive consumer interest in NFC payments in general.

In its first 72 hours of availability, Apple Pay hit over 1 million activations, which was more than all other competitors combined --?including Google Wallet. In just three days, Apple Pay became the largest contactless payment system in the U.S., more than the combined total of cards registered with competitors.

Wallet


Attention to all NFC tap-to-pay functions has increased in the wake of the Apple Pay announcement, which came in early September. Apple Pay officially launched in October on the iPhone 6 and iPhone 6 Plus with the release of iOS 8.1.

Though Apple had a number of launch partners for Apple Pay, the system also works with some non-official NFC terminals, as they rely on the same basic technology for authorizing transactions. Apple's system is different from Google Wallet, however, thanks to its reliance on the Touch ID fingerprint sensing system, allowing users to verify purchases securely without the need for a passcode.

Apple Pay also allows users to input their existing credit cards, and receive their usual points and rewards for using those cards. Apple has also partnered with banks to enhance security, ensuring that the user's credit card number, account number and other sensitive data are not stored on the iPhone itself or shared with merchants.

Instead of using the actual credit or debit card number, Apple Pay assigns a unique encrypted "Device Account Number" on the iPhone. The number is stored in a "Secure Element" dedicated chip on the handset, and is never stored on Apple Servers.

And in a rare unified showing from both iOS and Android users, consumers have lambasted merchants such as Walmart, CVS and Rite-Aid for blocking all NFC-based payments following the launch of Apple Pay. Those stores are planning to launch their own bank-connected QR code payment system dubbed CurrentC in 2015, which they hope will decrease consumer use of credit cards and allow them to avoid the associated transaction fees.
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Comments

  • Reply 1 of 220
    I'm fine with that, it puts pressure on retailers to get with the times.
  • Reply 2 of 220

    “GUYS GUYS OUR MORTAL ENEMIES ARE SUCCEEDING. QUICK, USE A FEATURE ON OUR PHONES WE’VE NEVER USED BEFORE”

    “Why are they our mortal enemies, again?”

    “BECAUSE THEY NO LIKE US NO MORE”

     

    Honestly, I bet it’s increasing in use due to the media spreading knowledge of its existence wider thanks to the NFC ban at some stores. Thanks again, Apple, for making Android users aware that their phones can actually do something!

  • Reply 3 of 220
    Quote:

    Originally Posted by Tallest Skil View Post

     

    “GUYS GUYS OUR MORTAL ENEMIES ARE SUCCEEDING. QUICK, USE A FEATURE ON OUR PHONES WE’VE NEVER USED BEFORE”

    “Why are they our mortal enemies, again?”

    “BECAUSE THEY NO LIKE US NO MORE”

     

    Honestly, I bet it’s increasing in use due to the media spreading knowledge of its existence wider thanks to the NFC ban at some stores. Thanks again, Apple, for making Android users aware that their phones can actually do something!




    Soon, Android users might discover they have a web browser too! :D

  • Reply 4 of 220

    Google: "Thanks, Apple."

  • Reply 5 of 220
    rob55rob55 Posts: 1,255member

    For the time being, I'm ok with Google Wallet seeing an uptick in users and actual use. However, having used ApplePay the other day at my local ShopRite, I can say that Google has nothing on Apple. The process of paying with ApplePay was as easy as described, and way easier than pulling out a credit card.

     

    Now I wonder what will happen if/when MCX starts pressuring ShopRite to turn off their fancy new NFC equipped terminals.

  • Reply 6 of 220
    gatorguygatorguy Posts: 21,265member
    “GUYS GUYS OUR MORTAL ENEMIES ARE SUCCEEDING. QUICK, USE A FEATURE ON OUR PHONES WE’VE NEVER USED BEFORE”
    “Why are they our mortal enemies, again?”
    “BECAUSE THEY NO LIKE US NO MORE”

    Honestly, I bet it’s increasing in use due to the media spreading knowledge of its existence wider thanks to the NFC ban at some stores. Thanks again, Apple, for making Android users aware that their phones can actually do something!
    As suspected Apple Pay is lifting all mobile payment ships. The retailers just weren't going to put much effort and money into NFC equipment until another big player, someone like Apple ;) , was on-board with it. Still no guarantee that either service will be the end-all for mobile payments but the chances are sure a lot better now, especially with more Android users now aware they have the feature and why they would want to use it.
  • Reply 7 of 220
    If there were previously 10 transactions and now there are 15 transactions...that's a 50% increase.

    Percentages are largely useless information.
  • Reply 8 of 220
    calicali Posts: 3,495member
    I kinda wish Apple had invented a proprietary standard for use of ?Pay besides NFC.
    That way it'll lock out piggybackers and shut fandroids up who think Giggle Pay and ?Pay are the same thing.
  • Reply 9 of 220
    cali wrote: »
    I kinda wish Apple had invented a proprietary standard for use of ?Pay besides NFC.
    That way it'll lock out piggybackers and shut fandroids up who think Giggle Pay and ?Pay are the same thing.

    Apple could license their secure tokenization and "secure element", but they have no reason to do so.
  • Reply 10 of 220
    Quote:

    Originally Posted by Tallest Skil View Post

     

    Honestly, I bet it’s increasing in use due to the media spreading knowledge of its existence wider thanks to the NFC ban at some stores.


     

    It's absolutely for that reason. Most users of any platform see a list of features, tally it up in their head, and make a decision to buy. A lot of the features sit there in the "I'll have to remember to try that" category. Then they maybe remember one day, and they're not at a store that supports it, and they just drop it until Apple gets NFC in the news.

     

    Android Beam is one of those features that very few people know about or remember to use. It's pretty cool, but it's not necessary.

  • Reply 11 of 220
    “GUYS GUYS OUR MORTAL ENEMIES ARE SUCCEEDING. QUICK, USE A FEATURE ON OUR PHONES WE’VE NEVER USED BEFORE”
    “Why are they our mortal enemies, again?”
    “BECAUSE THEY NO LIKE US NO MORE”

    Honestly, I bet it’s increasing in use due to the media spreading knowledge of its existence wider thanks to the NFC ban at some stores. Thanks again, Apple, for making Android users aware that their phones can actually do something!

    It's probably more like: "I heard Google Wallet was like Apple Pay, if you have one of the newer Android phones with the near field chip. I never tried it though, I just thought it was another one of the 75 free programs that get installed by Samsung on their phones."
  • Reply 12 of 220
    Quote:

    Originally Posted by waterrockets View Post

     

    Android Beam is one of those features that very few people know about or remember to use. It's pretty cool, but it's not necessary.


     

    AirDrop, for me at least, fits into that category as well. I think I've used it once.

  • Reply 13 of 220
    jbdragonjbdragon Posts: 2,185member
    Quote:

    Originally Posted by zroger73 View Post

     

    Google: "Thanks, Apple."


     

    You forgot, Thanks, with more Android users using Google Wallet, we'll be better able to spy on all their Shopping habits and how much they're spending!!!  All the better to get the whole picture of our users and use that data against them in the hopes to buy more crap!

  • Reply 14 of 220
    normmnormm Posts: 575member
    Quote:

    Originally Posted by SpamSandwich View Post





    Apple could license their secure tokenization and "secure element", but they have no reason to do so.



    Apple uses the new industry-standard tokenization, which is why it works at standard NFC terminals.  The "secure element" is in the standards-compliant NFC chip that Apple gets from NXP.

  • Reply 15 of 220
    Quote:
    Originally Posted by cali View Post



    I kinda wish Apple had invented a proprietary standard for use of ?Pay besides NFC.

    That way it'll lock out piggybackers and shut fandroids up who think Giggle Pay and ?Pay are the same thing.

    That's exactly what I don't want to see.  If everyone is selfish and creates their own proprietary closed system, we're going to have a confusing mess of fragmented retailers.  Some will have ApplePay terminals, some will have Google, some Paypass, some CurrentC, etc.  And it will never take off to the point where you can use your device in most places.  Standards are what help solve the chicken-and-egg problem of store terminals and payment devices.

  • Reply 16 of 220
    gatorguygatorguy Posts: 21,265member
    Apple could license their secure tokenization and "secure element", but they have no reason to do so.

    License it? Apple has no exclusive on a 'secure element". Heck when Google Wallet first rolled out it used the same type of "secure element" on the phone itself as Apple currently has, a separate discrete chip.
  • Reply 17 of 220
    I'm sure it's Android users saying,

    "Dur. . . Can I pay for theses cheetos with ApplePay or something hur hur"

    "sure, Do you have an Iphone 6 sir?

    "no way dude this phone is WAY BETTER ! Hur hur"

    "ok . . . I still think I can help you with googlepay"

    "Dur, is it the same ?"

    "yes"

    "Ha suckers!"
  • Reply 18 of 220
    Originally Posted by Gatorguy View Post

    As suspected Apple Pay is lifting all mobile payment ships. The retailers just weren't going to put much effort and money into NFC equipment until another big player, someone like Apple image , was on-board with it. 

     

    This is true! I totally buy this. Without a name that carries the weight of Apple’s, I can’t see very many technologies adopted at all.

     

    Oh, speaking of which, OS X will explicitly give you options if you have a Blu-ray drive installed, hiding them if you don’t.

     

  • Reply 19 of 220
    mjtomlinmjtomlin Posts: 2,028member
    Quote:

    Originally Posted by SpamSandwich View Post





    Apple could license their secure tokenization and "secure element", but they have no reason to do so.



    Neither of those are proprietary Apple technologies. Apple's part in all of this was getting banks, merchants, and transaction processors updated to support new protocol standards that are much more secure. It won't be long before other payment system make use of it. But even then, Apple still has several advantages; Touch ID, ease of use, and privacy.

     

    Apple is not looking to take over mobile payments, they're simply looking to increase the value of their devices by expanding the ecosystem (mobile payments, auto integration, home integration, health integration, etc.). iOS devices will become the tools to making your life easier and hopefully better.

  • Reply 20 of 220
    fallenjtfallenjt Posts: 3,982member
    sog35 wrote: »
    Google Wallet usage went from 100 transactions a day to 150.  LOL. big deal.

    The problem with Google Wallet is it does not have TouchID.  Having to enter a passcode for Google wallet to open your phone and to pay is more work than swiping a credit card.

    Its so aweful that one reviewer who was comparing Apple Pay to Google wallet said to put he disabled his lock passcode and set his phone on never sleep so he didn't have to enter passcodes or wake his phone.  After doing that he said Google Wallet is almost as good as Apple Pay! But guess what joker, your phone is a piggybank for all to steal from now.
    4-PIN in public is the worst implementation for "secured" method. What's the point of using PIN that everyone can see lol. Also, cellular signal needed for authentication from the cloud and always-on NFC suck. Google wallet is still half baked product unless it has biometric verification.
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