Recently Apple has introduced Apple Pay with i phone 6 and 6 plus. Google Wallet is a similar product even before Apple Pay. However, Apple seems to have more potential than Google in the mobile payment, mainly due to the difference between their business models.

To begin with, segmentation of mobile payment is “jobs-to-be-done” as mentioned by Clayton Christensen about Milkshake marketing. Because using bank cards has potential risks of information exposure, there is a demand of a more secure and fast way to pay from people. Since mobile payment allows people to purchase without carrying their bank cards or entering passwords, such convenience is the point of parity for all mobile payment products.

More importantly, the companies have to integrate products with their powerful business models in order to make profit. Apple performs better in customer relationship building than Google. Apple Pay is embedded in i phone 6 and 6 plus, thus the sales of i phones will help spread Apple Pay. Also, Apple’s retail stores can provide help to customers directly. In addition, Apple reinforces their brand and core values through live reports and advertising. On the other hand, Google doesn’t have their own phone products. Part of the goal of Google Wallet is to collect customers’ transaction history for Google’s advertising purpose, which can be a privacy concern for customers while Apple promises the privacy of transaction will not be exposed to Apple. The privacy promise is the big point of difference between Apple Pay and Google Wallet, which can contribute to better customer relationship through trust building, and more brand loyalty.

Citation:

Isaac, Mike. “With Apple Pay, a Push Into Mobile Payments.” The New York Times. The New York Times, 9 Sept. 2014. Web. 2 Oct. 2014.

Milian, Mark, and Ari Levy. “Google Wallet Is Leaking Money.” Bloomberg Business Week. Bloomberg, 6 June 2013. Web. 2 Oct. 2014.

Photos:”IOS 8.1 Get A Release Day, Will Feature Apple Pay” Redmond Pie.com