| Google launches Google Pay by Jaime Toplin on Jan 9, 2018, 1:40 PM Advertisement
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_snthFfNXnxave7lxiKPgd-ajTTOw60WAa3HxaScjN6Z-t_CQGpysUraDN5aHF8hbI_HuXnZVr2ucSfmXUjAPSr4xMBvECsxE6HUVZzrgi01iuYmWZd4sIPfu-7ixv8yv3wDGS60irmvH1JtY_cNu0hsdaOnLRIHWtIYKDgrW3lk3j0itU6KNy7_URC8VkXU7YkaHpkp4VPso969dd9acHgl4uXMN7tsVXHSD86fMR6Co2fmg=s0-d) This story was delivered to BI Intelligence "Payments Briefing" subscribers hours before appearing on Business Insider. To be the first to know, please click here. Google will consolidate all its existing payment offerings into a new service called Google Pay, which will encompass in-store payments (Android Pay), peer-to-peer (P2P) offerings (Google Wallet), in-app and in-browser payments made through stored credentials in Chrome, and more, according to a company blog post. Google Pay, which is live in the US, counts several merchant partners, including Airbnb, Fandango, and Instacart, and is likely to see more soon thanks to a wide swath of processor partnerships — it’s already compatible with Adyen, Braintree, Stripe, Vantiv, Worldpay, and others — that will make merchant integration quick and simple. Google is working to build a payments ecosystem of its own, which could catalyze usage of its payments offerings, specifically in-store payment products; Android Pay, Google’s in-store and in-app offering, falls below average on both the adoption and engagement fronts, counting just 10% adoption among eligible users and the smallest share of repeat users among its peers. And lack of awareness might be hurting its other offerings, like Google Wallet. Google Pay could help grow these metrics in three ways: - Reducing fragmentation through convenience: Customers are paying on their phones, they just aren’t doing so in-store; BI Intelligence expects US mobile P2P volume to hit $97 billion this year, and US m-commerce retail sales to hit $150 billion, compared with just $56 billion in-store. By tying more popular offerings to in-store payments, Google is creating a cohesive and convenient brand-wide payment ecosystem, which could draw users to engage more frequently with all these products, increasing volume over time.
- Incentivizing users to test the product: Google is working with merchants to give customers a reason to choose Google Pay in-app or in-browser over other providers, like Visa Checkout or PayPal One Touch, through discounts and incentives. These deals might push users to test Google Pay in a friction-filled environment, find it convenient, and continue to return to the service across its use cases, since credentials are already stored.
- Drawing customers away from competition: Firms across the payments space are working to build out wide ecosystems: Apple just moved into P2P through the launch of Apple Pay Cash, and P2P-focused services like Venmo are drifting toward commerce, adding in-store and online payment options. To stay afloat as volume expands over the next few years, ecosystems like Google Pay are going to become necessary to keep customers loyal.
But the firm needs to work to take advantage of the synergies for a true success. In its blog post, Google noted that the launch of the Google Pay brand is just a “first step” for the product. And though the firm has some strong justifications for building the ecosystem, that alone isn’t going to be enough to see adoption balloon overnight. For the brand to succeed, Google is going to have to take some concrete steps to ensure the service remains the best payment choice for its customers, keeping it top-of-wallet across channels for all consumers. If it doesn't, Google will risk losing out to existing methods or competitors. BI Intelligence, Business Insider's premium research service, has written a detailed report on mobile payments that: - Sizes the US in-store mobile payments market and examines growth drivers.
- Analyzes headwinds that have suppressed adoption.
- Identifies three strategic changes providers can make to improve their results.
- Evaluates pockets of success in the market.
- Provides actionable insights that providers can implement to improve results.
Interested in getting the full report? Here are two ways to access it: - Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND more than 250 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> Learn More Now
- Purchase and download the report from our research store. >> Purchase & Download Now
| |
0 comments:
Post a Comment