Google’s (NASDAQ:GOOG) pressure tactics on app developers to adopt Google Wallet as the payment mode is evidence that the search giant’s much-hyped payment platform is struggling.  The worrying part for Google is that this move may directly hamper the growth of its Android app store, now called Google Play. Having said that, Apple (NASDAQ:AAPL) has always made payments on its own iOS platform mandatory since the inception of the App Store.
Emulating Apple May Backfire for Google
While Apple mandates payments on the App Store through its own platform, it must be noted that this is effectively the “Apple” way for most of its services i.e. maintaining exclusivity is generic to the company. Google, on the other hand, has always pushed Android as a flexible alternative, even allowing for modification of its OS source code to suit different hardware platforms. Consequently, its warning to developers to use Google Wallet (or be suspended from Google Play within 30 days) is sure to leave a bitter taste among the community members.
And its worse that Google is demanding a 30% share in all transactions, which is more than the share taken by other third-party platforms like PayPal. However, considering that Android is managing 1 billion app downloads a month,  it may provide some short-term respite to Google Wallet as it keeps battling newer payment options like Isis. 
We currently have a price estimate of near $627 for Google’s stock, which is roughly 3% above the current market price.