skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Ovum view

Summary

During a keynote session at MWC 2015 Google announced the launch of Android Pay, an API framework that will enable third parties to leverage its capabilities to enhance their own m-commerce applications for Android devices. This take on m-payments is slightly different to consumer-facing services such as Apple Pay, Samsung Pay, and indeed the existing Google Wallet – Google is positioning Android Pay squarely as a platform. However, Android Pay does have some similarities with the consumer services, including the use of NFC for proximity payments, card tokenization, and biometrics for authentication.

Google has global ambitions for Android Pay

Google has suggested that Android Pay would be a particularly good m-payments platform for application developers in emerging markets such as China and Africa. This makes sense, given the growing base of Android smartphones in emerging markets.

The upbeat projections for Android Pay are in sharp contrast to the current position of Google Wallet, which, after four years, is still largely confined to the US, where its installed base is building slowly. Google says it will continue with Google Wallet, which Ovum presumes will in turn use Android Pay’s API framework. However, it remains to be seen whether this and the anticipated benefits of Google’s recent acquisition of Softcard will be enough to give Google Wallet the boost it needs.

The string of recent m-payment announcements from Google is no surprise. The m-payments market is becoming highly competitive. Apple Pay has raised the stakes, forcing its rivals to respond, and the launch of Samsung Pay also poses a challenge. Unfortunately Google’s m-payments strategy is becoming rather muddy just when it needs to be crystal clear. It needs to turn the situation around and achieve the clarity it needs at its forthcoming developer conference in May.

Appendix

Author

Eden Zoller, Principal Analyst, Consumer Services and Payments

eden.zoller@ovum.com

Recommended Articles

  • Service Provider Markets, Consumer & Entertainment Services,...

    MWC 2018 Highlights

    By Ronan De Renesse 27 Feb 2018

    Over 20 of our senior Ovum analysts and consultants attended this year’s Mobile World Congress in Barcelona at the end of February. In between meetings, briefings and presentations, our analyst team were blogging and tweeting about key developments, trends and rumors. Have a look through our daily MWC 2018 Highlights to find out what happened.

    Topics 5G AI IoT Cloud Payments SDN/NFV Smart home

  • Internet of Things

    IoT Viewpoints 2018

    IoT Viewpoints explore the IoT opportunity in 2018 and beyond. Download our latest e-book to get our newest collection of thought leadership articles on the emerging IoT trends, technologies and opportunities.

    Topics IoT

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.

;

Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700


Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

Email us at ClientServices@ovum.com

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at pr@ovum.com

Contact marketing - 
marketingdepartment@ovum.com

Already an Ovum client? Login to the Knowledge Center now