Feeds

Google pockets card payment biz, slips it into Wallet

Token effort - or strategic brainwave?

Providing a secure and efficient Helpdesk

Google has bought payment processor TxVia to beef up its Wallet offering, putting scalable payment and token management into the Chocolate Factory's hands.

TxVia provides a back-end service for prepaid cards including gift tokens, loyalty schemes and travel cards. It has 100 million customers and links to all the important clearing houses. Google Wallet has apparently been working with TxVia for the last year or so, and has now decided to swallow the company for an undisclosed sum.

Over the last five years, TxVia has raised somewhere in the region of $50m, the last round being in 2010, but it has contacts and experience which Google Wallet desperately needs, and while other electronic-wallet schemes are signing up an ever-increasing range of partners, it is worth remembering that the only really successful example owes that success to its vertical integration.

Felica is the Japanese e-Wallet platform, which is still 38 per cent owned by DoCoMo. The platform includes the payment system EDY, which is run by BitWallet, a company set up by a consortium which included DoCoMo, which can also provide banking and credit-card services, should you so wish.

DoCoMo's weight in the mobile market ensured handset compatibility, and the vertical integration ensured that DoCoMo made its money back.

Outside Japan things are much more fragmented. The operators in most countries are now organising themselves to create standard platforms, upon which payment services from Visa, for exaple – or the (newly announced) ticketing services from Ecebs – will sit. Banks will then be able to offer instances of cards, while train companies offer electronic tickets, and the customer will sit atop the wobbling stack of participants.

All of the participants, of course, believe themselves to be the keystone in the process – and want suitable restitution.

Google's purchase of TxVia ties some of those participants together, and the fact that both the technology and platform are coming from the same place could also provide a firmer footing. If Apple gets into the NFC business then it will be that vertical integration which differentiates it, so Google is perhaps wise to strap together what it can, while it can. ®

Protecting against web application threats using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.