Although mobile payment systems using NFC technology have been slow to adopt, that doesn't mean the market competition for this new concept isn't heating up. Earlier in the year Verizon made it clear that they were not going to allow Google Wallet to function on their smartphones. They claimed the reason they didn't want the Google Wallet app on their phones was because the app requires access to the secure element of the device, which could compromise the customer's security. Here's Verizon's statement on the matter,
Many folks speculated that this was a bogus excuse and that the real reason Verizon doesn't want Google Wallet on their phones is because of their joint venture with T-Mobile and AT&T called ISIS that is a competitor mobile payment system. It turns out this speculation was dead-on. Verizon was basically caught with their pants down when it was recently determined that their own Mobile Wallet App, ISIS, also requires deep integration with the secure element of the phone.“Google is free to offer its Google Wallet application in a manner that doesn’t require integration with the secure element.”
Some news organizations are reporting that this is potentially worse than just obvious hypocrisy. They are suggesting that it is anti-competitive and is designed to help them create an ISIS monopoly. In fact, Google has complained to the FCC about precisely this issue with Verizon.
No wonder Google is considering going into the carrier business...