Only a couple days ago Google did a massive update to it’s mobile payment service known as “Google Wallet.” It turns out though, that the company may have been overstepping it’s bounds a bit. According to a post on Google’s commerce blog, Google Wallet now is able to use all major debit and credit card types. A representative from America Express said differently though. The representative said that the statement wasn’t fully accurate but users were free to load American Express cards into the Google Wallet app and use them for in-store purchases. American Express never officially signed or agreed to that deal though. American Express Vice-President Bradley Minor has said:
“We want to make sure Google’s mobile wallet product meets the standards we set for our Cardmembers in terms of transparency and clarity about transaction detail. Right now, American Express does not have an agreement with Google for our cards to be used in the Google mobile wallet.”
This is fairly interesting as most people were under the impression that all the credit card companies had agreed to the service. The two companies had apparently been in discussions about working together but there was no official relationship in place yet. American Express also apparently has the ability to forcibly shut down the American Express card support through Google Wallet should things go awry.
Google responded to the public with this statement:
“For many years, we’ve accepted American Express, Visa, MasterCard and Discover for online and mobile transactions. The latest version of Google Wallet extends these same benefits to people who choose to use the Google Wallet app to make purchases in-store. We are in active discussions with American Express and look forward to working together as partners as the world embraces digital payments.”
While that may not be the answer to why Google had done this without an agreement it at least does say they are working with American Express on the issue at hand. The one thing American Express does not like about Google’s updated Wallet service is how it has decided to handle multiple credit card types. Right now, in-store Wallet transactions are currently being handled by a virtual MasterCard PayPass account hidden in the devices storage area. The transactions you make are passed along to whatever credit card account the user had selected. This means that not all of the purchase information is carried over along with the purchase amount. American Express is not in agreement with the way that is handled.
It will be very interesting to see how things go from here on out. From the statement from the VP of America Express things aren’t sounding like they’ll go the way Google wants them to. It’d be a shocker if they did though. I hope they do go ahead with Google Wallet as this service seems to be pretty secure and really robust. I wasn’t very fond of Google saying American Express was apart of it when they really weren’t though.
source: Tech Crunch