Google, everyone plots mobile payment schemes: Where are the credit card giants?

Google, everyone plots mobile payment schemes: Where are the credit card giants?

Summary: Everyone has some e-payment system planned. Why are credit card companies yielding to middlemen?


Google plots its mobile payment service where you can pay for goods via your phone. Sprint is in on the act. Square aims to replace cash registers with smartphones. Near field communications (NFC) could usher in a wave of e-payment mechanisms.


Where are the credit card companies amid all these moves? Visa, Mastercard, American Express and Discover have the accounts, networks and customer relationships could have turned phones into payment systems with simple apps that would span multiple devices years ago. Update: Visa noted that it has a digital wallet that is cross platform. That effort was announced May 11.

However, these nascent effort from card players seem late. Credit card giants are allowing Google, carriers, upstarts and most likely Apple to be middlemen.

This e-payment scrum is going to make one interesting business school case study in the years ahead. The narrative will mostly revolve around how well established credit card networks missed the technology curve.

Topics: Banking, Enterprise Software, Google, Mobility

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  • Is there money in it worth the trouble?

    from the CC companies standpoint, aren't they making money from these apps simply by sitting back, as it links to their credit cards to work.
    Will Pharaoh
  • Could Apple actually cut out the middle men?

    They have 60 some billion in the bank. Heck, they could be a bank.<br><br>Give that CitiBank makes more from its credit card division than either Microsoft or Walmart, the amount of money in this is HUGE. Visa makes less than $1billion in revenue each quarter. The banks that issue the cards make about 10X that amount.<br><br>Why not cut on the bank and Visa? Or at least the bank?<br><br>Darn, I would love to see the banks [lose] all of this revenue.
  • Wallstreet Slackers, no $24mil. bonus this year for you...

    I think the New York, 24 million dollar a year bonus bankers for these credit card companies are slacking. Doesn't look like they've earned there 24 million dollar bonus this year. Looks like that $660,000/year base salary might have to cut it...
  • RE: Google, everyone plots mobile payment schemes: Where are the credit card giants?

    They know that radio is NOT secure.