06/28/2015 - No Comments!

Emerging Payments: Google Wallet & Android Pay, notes

In this webinar, Chris Sweetland and Lauren Burley of Google reviewed their company's upcoming Android Pay offerings and their opportunities within the banking and financial landscape. These are my notes from the webinar, which I attended in July of 2015.

Commerce & Android Pay

  • Android Pay was first publicly announced by Google in May of 2015
  • It will be used by the company to help bridge the gap between information and commerce
  • Android is the most pervasive operating system behind mobile devices on the planet
  • Google reports that in 2014, there were four times as many Android devices sold in the world than there were babies born
  • The average American today looks at their smartphone 150 times per day
  • We are using smartphones to address and enable even the simplest of tasks in our daily lives
  • One task that hasn't been up-to-speed with this trend has been point-of-sale commerce
  • Users hold their phones while waiting in lines to make a purchase, but put them away before pulling out paper currency or credit cards
  • Google hopes that Android Pay will seriously shift this model
  • 7 in 10 Android phones today support NFC, which is used for payment via phone
  • This number will only go up as most all new phones introduced onto the market are NFC enabled
  • Contactless acceptance of this type of payment is nearing 1 million locations in the US and rapidly expanding
  • This is up from just 200,000 point-of-sale terminals two years ago

The Android Pay Brand

  • Android Pay will be fully launched in Fall of 2015
  • The product will support both tap & pay as well as in-app purchases
  • The in-app purchases feature will replace what is currently on the market as Google Wallet
  • Google Wallet will continue to be supported, but focus more on person-to-person payments
  • Android Pay will differentiate by being marketed not directly to users, but to companies and app developers
  • It will be more of a platform than exists today, fully integrated to support banking and credit card brands
  • It aims to be a globally scaleable assets, where Google Wallet was a US only pilot

3 Android Pay Consumer Value Propositions


  • Android Pay seeks to accomplish everything necessary in a commerce transaction with just one tap
  • Smart tap (as acquired by Google via Softcard) enables seamless payment as with a credit or debit card
  • Also facilitates loyalty interactions, coupons and points systems - all within a single tap interaction
  • Seeks to authenticate users via unlocking the device using a pin, pattern, or password


  • Android Pay uses tokenization to limit the possibility of counterfeit transactions in the physical marketplace
  • Behind the scenes, it uses something called "100+ signals device attestation" to check if the device is being used as expected
  • This can reveal if a device is rooted or hacked, and lead to restricting the capability of Android Pay


  • The Android Pay API is built as a service layer on the device itself
  • All devices back to Kit-Kat will be able to support Android Pay
  • It will also be pre-installed on all coming Android devices in the future
  • An open system to enable smaller companies to leverage the capability and create their own apps tapping into Android Pay capabilities


  • AT&T, T-Mobile and Verizon partnerships have been established
  • These companies will promote Android Pay within their storefronts
  • Includes educating consumers on how to enroll in Android Pay when purchasing new devices
  • Partnerships with VISA, Mastercard, American Express and Discover
  • Dozens of merchants will promote Android Pay at the point-of-sale in their stores using signage and stickers
  • In-app purchases will support Android Pay later this year, transitioning off of Google Wallet


  • Google is "all-in" on mobile payments
  • Partnerships with Google will provide partners with the scale necessary to drive mainstream adoption of secure, tokenized mobile payments
  • The Android Pay app will offer a solid user experience along with the opportunity to be white-labeled by 3rd party companies

Published by: Ray in 2015, Android, Learning, Presentation Notes