that Google Wallet users can now use any major debit or credit card
from Visa (NYSE:
), MasterCard (NYSE:
), Discover (NYSE:
), or American Express (NYSE:
). However, it seems that Google might have made this offer without
getting the approval of these credit card providers. According to
, American Express does not currently have an agreement with Google
that allows its cards to be used in the company's mobile wallet.
Google responded to this revelation by telling TechCrunch that it
is currently in "active discussions" with American Express to
address the issue.
For the time being nothing changes; American Express cardholders
can still make purchases through Google Wallet.
Going forward, Google might have to approach the situation with
a bit more caution. The search engine giant already got into
trouble in December when it attempted to roll out the service.
Verizon Wireless (NYSE: ) responded to Google's venture by .
Consequently, customers who purchased the Verizon version of the
Galaxy Nexus could not use one of Google's most prominent
At the time, Verizon was in the process of
a mobile payment platform with T-Mobile and AT&T (NYSE: ). The
platform was expected to receive help from Discover Financial
Services to process payments and Barclays PLC (NYSE: ), which would
become a bank partner.
After Verizon prevented its subscribers from using Google
Wallet, Google was largely expected to lose the mobile payment
battle. The company pushed on and with a cloud-based version now up
and running, it seems that there is little anyone can do to stop
Google from becoming a significant player in this market.
That could change if the discussions with American Express do
not end well. According to TechCrunch, American Express has the
ability to shut down its service and prevent it from being used
with Google Wallet. This could make life difficult for Google,
which needs the help (or at least the support) of American Express
and other credit card providers in order to make Google Wallet a
success. Without them, Google would have to launch a mobile payment
service entirely on its own.
(c) 2012 Benzinga.com. Benzinga does not provide investment advice.
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