Google Wallet debuted in September 2011 and it's not an understatement to say that the service hasn't exactly been a rousing success, a fact underscored by a number of recent high-profile departures
Google Wallet debuted in September 2011 and it’s not an understatement to say that the service hasn’t exactly been a rousing success. But to be fair, Google Wallet has been fighting an uphill battle ever since it first hit the market. For starters, the service debuted on just one carrier (Sprint) and was only available on one device (Sprint Nexus S 4G) – not exactly a dangerous 1-2 combo. Second, the NFC stickers Google made available for non-NFC enabled phones also proved to be a disappointment in the marketplace.
That notwithstanding, more Google Wallet enabled devices are on the way, but recent executive shakeups at Google Wallet underscore the problems and challenges Google faces as it tries to secure a foothold in the NFC space.
Recently, there’s been a number of significant departures from Google’s Wallet team. Earlier this week, NFC Times reported that Google Wallet co-founding engineer Rob von Behren left Google for Square, the payment start-up founded by Twitter founder Jack Dorsey. Other notable departures from the Google Wallet team include Jonathan Wall, the other co-founding engineer, product lead Marc Freed-Finnegan, director of engineering Andrew Zaeske, and Vikas Gupta who worked as Google’s “head of consumer payments.”
Von Behren’s move to Square is certainly interesting as it suggests that Square – whose bread and butter is the attachable dongle iOS and Android users can set up to process credit card payments – is fully aware that NFC payments may be the next big thing and will not be an area they’re going to ignore. And second, it suggests that all is not well over at Google’s team responsible for Google Wallet.
NFC Times relays that internal strife has plagued the Google Wallet team ever since Google lured away PayPal’s NFC guru Osama Bedier with a reportedly lucrative signing bonus. Incidentally, PayPal was quick to sue Google and Bedier alleging that they are both misappropriating PayPal trade secrets. What’s more, PayPal alleges that Bedier was engaged in employment negotiations with Google while simultaneously spearheading discussions between Google and PayPal over potential mobile payment agreements.
But with respect to the dysfunction that reportedly plagues Google Wallet, the report notes:
Sources have told NFC Times that the Google Wallet team was split over strategy for the NFC wallet, which appears to be struggling to sign up new partners, including banks, operators, merchants and handset vendors. Google also hasn’t released transaction figures, but they are said to be low.
One of the chief issues creating the rift appears to be how open the wallet would be to app developers and service providers. That, along with some other differences on strategy, put some long-standing members of the Google Wallet team, who had argued for more openness, at odds with vice president of payments and wallet head Bedier.
Bedier joined Google from PayPal in February of 2011 and took substantive control over a program that had already been in development for two years. Many of his decisions apparently did not sit well with resident wallet team members.
Incidentally, Google announced this week that it is acquiring TxVia, a payments company that brings with it over 100 million accounts.
