Google Offers To Split Fees With Carriers To Boost Wallet Adoption

+6.28%
Upside
152
Market
162
Trefis
GOOG: Alphabet logo
GOOG
Alphabet

Google (NASDAQ:GOOG) jumped into the mobile payments space last year with its Google Wallet offering. However, its NFC-enabled mobile wallet product has failed to gain much traction due to tremendous competition in the space. Reports suggests that Google is considering sharing revenue with carriers like Verizon (NYSE:VZ) and AT&T (NYSE:T) in order to get them to adopt its technology and boost market share in the mobile payments market. [1] Google competes primarily with eBay‘s (NASDAQ:EBAY) Paypal, Square, carrier-backed ISIS, and to some extent Apple (NASDAQ:AAPL) in the mobile payments market.

Check out our complete analysis of Google

Google Wallet to Help Google’s Mobile Advertising Business

Relevant Articles
  1. Beating S&P 500 by 37% Since The Start Of 2023, Where Is Alphabet Stock Headed?
  2. Beating The S&P 500 By 40% Since The Start Of 2023, What To Expect From Alphabet Stock In Q4?
  3. After 50% Move This Year Alphabet Stock To Outperform The Estimates In Q3
  4. Alphabet Stock Outperformed The Street Expectations In Q2
  5. What To Expect From Alphabet Stock ?
  6. Alphabet Stock Lost 10% In One Week, What’s Next?

Google doesn’t aim to generate any significant revenue through the transaction fees on Google Wallet. Instead, it hopes to improve its mobile advertising offering by targeting shoppers better with coupons and promotions through the use of data, stats and trends gleaned from the Google Wallet usage.

To do that, it needs massive scale. Given how slowly it has grown over the past few months while its competitors have leaped ahead, using revenue sharing partnerships to boost market share may be a wise move on its part. The global mobile advertising market is expected to be worth $11 billion in 2016, up from around $2.6 billion this year.

Mobile advertising is one of Google’s most important businesses, and accounts for nearly one-third of its overall value. We currently have a $627 Trefis price estimate for Google, which stands nearly 2% below its market price.

Understand How a Company’s Products Impact its Stock Price at Trefis

Notes:
  1. Google Said to Rethink Wallet Strategy Amid Slow Adoption, Bloomberg []