Walmart and Target are among a group of two dozen retailers working on the introduction of an NFC mobile wallet which would compete directly with Isis and Google Wallet, the Wall Street Journal reports.
Two dozen US merchants, including retail giants Walmart and Target, are working together to develop their own mobile payments service, according to the Wall Street Journal.
The service would compete directly with Google Wallet and Isis, sources told the newspaper:
According to people with direct knowledge of the retailers’ project, merchants say they are not satisfied with the mobile payment products that have been launched so far, which limit the merchants to providing personalized offers and coupons.
Several also cited recent incidents in which malicious applications appeared on Google’s Android mobile device software.
“What we see out there doesn’t make us very happy,” one executive involved in the venture explained.
NFC World’s take:
Like the news earlier today that Google is in talks with carriers to take Google Wallet global, breakaway moves such as the service being developed by US retailers were predicted in our latest research report, The NFC Market 2012. In that report, we highlighted fourteen barriers to success that need to be addressed by those bringing NFC to market and issued two warnings:
In the battle to win control of consumers’ mobile wallets, these secure element providers are at risk of putting so much focus on winning as big a slice of the pie as possible that they risk ending up with a severely reduced pie, or even no pie at all.
Key players remain reluctant to accept the reality of what service providers actually want, especially in terms of how NFC as it is currently offered fits (or rather doesn’t fit) with their existing ways of doing business.
Whether a retailer-backed NFC mobile wallet will see the light of day or is simply a negotiating lever, however, remains to be seen…