Wallet Is Google's Money Sink
The company has been spending huge amounts of money with little to show for it
With all the company focusing on online payments, especially mobile payments, it's easy to assume that the pie must be big enough to warrant the attention. But that may not be entirely the case, as Google is finding out.According to a report by Businessweek, Google is struggling with Wallet and is hitting several walls in the process.
It's also a money sink, Google's money sink, the company is losing money with every transactions, thanks to the credit-card processing fees.
And Google has already poured hundreds of millions of dollars into Wallet, by using hundreds of developers focused solely on Wallet and with all the acquisitions it made to strengthen the product.
Yet, a rumored Google Wallet plastic card has been delayed and possibly canceled. Osama Bedier, who came from PayPal to lead the unit, left earlier this year.
What's more, there's ample competition and very few companies wanting to partner with Google for this, there's just too much at stake.
Worst of all, people simply aren't using Wallet as Google envisioned it, as a way of paying for stuff at your local shop.