Google’s recent announcement of turning Google wallet into a mobile payment system came as a bit of a surprise not only to their competitors, but to e-commerce merchants as well. The system has the potential to take over mobile phone applications and have users buying items through the trusted name of Google, which would impose the fees for the service directly on the merchants. Unfortunately for Google, big name companies like Walmart and Target aren’t going to take this news lying down. The ownership of the mobile wallet space has now turned into a battle to see who can make mobile payment the safest and most secure option to those who buy items directly over their phones.
Besides Wal-Mart and Target, several Fortune 500 companies, such as Best Buy, Lowes, Sears and other retailers have come together to fight back on the outrageous fees that Google charges for purchases made through its system by forming a group called the Merchant Customer Exchange. Not only will this app offer the same functionality as Google Wallet, but those who use it will receive specials and offers from the retailers.
The first thought before Google proceeds forward is do they have what it takes to accept the challenge that could come from the power of all these companies. Our first thought is that Google changed the world as it is, so what would actually lead them to hold off on the project and not at least try to command a portion of the market. We do know that it will surely be a race to the finish line to see who can produce results first, and that could easily decide who’s going to win the war of credit card processing over mobile phones. We can say for sure that the deals and offers that will be supplied by some of the companies involved in the Merchant Customer Exchange won’t be available anywhere else, and that could certainly be a tempting deal that consumers look towards when deciding on which app to use on their phone.
It’s certainly no easy task to take on such a corporate monster as Google, but with the powers of some of the largest Fortune 500 companies in the world combining into one effort, we could see some interesting results in the next several weeks. What was once a simple idea that Google was working on has become a marathon race that will have a photo finish provided both parties continue on their paths.