28 May 2015
Google unveiled AndroidPay today.
- AndroidPay = ApplePay without the 15bps from banks. Same tokens and everything.
- GoogleWallet is morphing into a P2P Venmo service.. plus Hands Free “Square Card case” see Google URL https://get.google.com/handsfree
- Most significant?
- Google has greatly expanded its footprint up to the silicon to create a secure enclave equiv within ARM’s TrustZone TEE
- NO 15bps for Google. Google created bilateral agreements with top 5 banks (like Apple) only to be shut down by the new Network programs (VDEP Below) where tokens don’t allow for wallet fees. Google then had to trash 2 years of work (on bilaterals) and remake them for marketing/branding permission (to use Android Pay logo). This means the Apple deal (15bps) will not expand out of the US and will be sunset quickly.
- Google has made Android Pay part of Google Mandatory Services (GMS) for next version: Android M (like search, maps, gmail, …)
- US MNOs have consented to Android Pay as GMS (with rumored economics)
- Google WINS BIG in bringing retailers along with their plan (Coke, McDonalds, Papa Johns, …) and BEATS Apple to punch with integrated loyalty cards. Apple gets and F here.. and Google gets an A-.. (Would have been A+ if ready to roll out with McD’s)
- This means no other NFC wallets on Android in US (phones are locked down)
- Google is using same token service as Apple.. any issuer can sign up through Visa/Mastercard intranet sites
- Samsung Pay (or any NFC wallet) is completely screwed in the US.. No wallet installed on the phone. Imagine the problem in getting consumer to 1) Load, 2) Register, 3) USE (with another competing app)
- HCE is a green light.. but Google is in a place to certify all NFC/SIM based wallets in the Android M architecture . MNOs will need to decide if they want to take the Google carrot and accept the new GMS terms. Or follow in the GSMA/NFC/TSM/SIM based model with no revenue and no control. Europe and China and Korea will be the most interesting. My guess is that these markets will keep the GSMA/NFC SIM based model.. I’m still trying to process what this means for NXPi, but with the success of HCE and the new TrustZone within ARM it can’t be a good for any silicon specialist.
Side Story… The Banks hate the Apple Pay deal (NEVER AGAIN).. My friends in mountain view take a meeting with a large bank on AndroidPay “You guys can forget about the Apple Pay deal, it will never happen again, lets start the conversation on what you will PAY for the privilege of having my card in your wallet.” The Visa VDEP program (and MA’s equiv) addressed this issue. Google did not get the 15bps.. and the Issuers got nothing (exclusivity, revenue, … ). Per VDEP, If you use the network’s token facilities you can’t discriminate… Cards will be permissioned to any approved wallet. There is also a new iron fence around payment data use.. A VERY VERY big step.
Hands free with McDonald’s could be cool.. https://youtu.be/Qxet1VdpOQ4
Visa reveals Visa Digital Enablement Service (VDEP)
This is a MAJOR announcement, on part with the release of Tokens. The rails and rules for tokens. Think of this as “accept all cards” rule for tokens that is as important as VisaNet itself. A brilliant accomplishment.. WOW.. will write more this weekend.