Feeds

US retail kingpins swoon: Nobody bonks like Google does

Ad giant will win the e-wallet war - survey

Gartner critical capabilities for enterprise endpoint backup

US retailers reckon Google will end up dominating the pay-by-bonk/eWallet business, sidelining PayPal and bypassing operator-backed ISIS simply because the Google Wallet juggernaut is unstoppable.

More than half of the 225 retailers surveyed at the National Retail Federation's annual shindig reckon Google will inevitably dominate, with only a quarter backing PayPal and a measly 4 per cent believing ISIS can grab the crown - which is important as they (almost) all agree that there's only one crown to grab. Having a single dominant platform is apparently vital to electronic payments which US retailers see as more important, and more disruptive, than the EMV (Chip and PIN) systems they're supposed to be implementing.

The survey was done by payment-processing outfit ACI Worldwide, which discovered very little confidence in EMV compliance, with 56 per cent of the retailers reporting the industry was unprepared for the deadlines. Those failing to shift in time will end up taking on liability for fraudulent transactions, so there is plenty of incentive to get moving, not least because EMV works better the more widely it's supported.

Fraud rates in Europe have dived since the introduction of EMV. Greater use of the PIN does put its security at risk, but the chip is effectively impossible to copy, so the thief needs to lift the card too, unless the fraud is committed in a country without EMV. For backwards compatibility, EMV cards still have an easily copied magnetic strip, so a waiter in the UK can see the diner entering his PIN and surreptitiously swipe the stripe in order to make a copy, ship both things over to the USA and his confederate can take cash right from the bank machine, at least until America gets EMV too.

But American retailers are more interested in electronic wallets, and the brand recognition Google has attained as a first-mover in that market. ISIS has the backing of the network operators and uses a SIM-based secure element under operator control, but it has to step very carefully and has only rolled out services to a few markets. PayPal, meanwhile, uses technology based on barcodes, which feels clumsy in comparison - despite the fact that it works on a wide range of devices.

Less than 20 per cent of those polled thought there was room for a new entrant, though we suspect that number would have been bigger if Apple had been mentioned. Cupertino has a voucher scheme running on its iOS platform, but beyond a few patents it has shown little inclination to get into bonking - much to the surprise of the industry.

This is a long game, and one with big returns for the winner. Google Wallet got a lot of publicity by hurling itself into an undeveloped market, but the other players clearly reckon that slow and steady will win this race - whatever the US retailers think. ®

The essential guide to IT transformation

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.