Google’s Schmidt Predicts Contactless Terminal Rollout

Google’s executive chairman Eric Schmidt reportedly predicted Wednesday that one third of U.S. point-of-sale terminals would accept contactless payment within a year, a penetration rate that he said would be “sufficient” for widespread adoption of NFC-based mobile commerce.

But Schmidt, who was speaking at the Cannes Lions International Advertising Festival in France on Wednesday, added that the projection was only an “educated guess,” according to an article in the Financial Times.

“I judge that based on how long I think it takes, because the terminals are available now, the software is available now or this summer,” he reportedly said. “How long does it take an infrastructure player to upgrade a significant percentage of their infrastructure–it’s on the order of a year, it’s not a week, it’s not a month but it’s also not five years…It’s an educated guess.”

A Tall Order
But upgrading a third of the terminals in the United States within a year would be a tall order, given that, at present, only about 2% of the roughly 7 million card-accepting merchant locations in the United States have been equipped with contactless POS terminals since the U.S. contactless-payment rollout began seven years ago. And many merchant locations have multiple POS terminals.

Google needs a wide rollout of contactless terminals that accept payment along with coupons and other offers for its Google Wallet, unveiled last month, to be successful. Schmidt Wednesday reportedly called mobile advertising and payments a budding $1 trillion industry. 

But while Google is believed to be subsidizing at least part of the cost for terminals for the 16 major retail chains it announced will participate in the wallet, Schmidt Wednesday reiterated earlier comments that Google would not be funding the terminals.

“That money is going to be spent not by Google and not by the phone guys but by the credit card companies, because the fraud rates are so much lower,” he said in the article. “Nobody knows how quickly this will occur, but it’s in their interests to convert as fast as they humanly can.”

Payment card networks and banks have not said they would subsidize terminals going forward, although MasterCard Worldwide and other card networks paid for many of the contactless terminals rolled out in the past to support the contactless card rollout.

Schmidt’s statement that one-third penetration of terminals would be sufficient to support the widespread adoption of NFC-based mobile commerce is believed to be the first time a Google executive has made such an estimate.

HEADLINE NEWS

Orange Cash Gets New Life as Part of Orange Bank App

NFC TIMES Exclusive Insight – As expected, Orange will continue offering its NFC-enabled Orange Cash Visa-branded card with the launch of its Orange Bank mobile service.

First HCE-Enabled JCB Cards to Hit Market in Taiwan in First Quarter

Nov 14 2017

NFC TIMES Exclusive Insight – Japanese credit card company JCB will participate early next year in a mobile wallet from the Taiwan Mobile Payment banking joint venture, marking the first time JCB will support host card emulation in a mobile payments service.

Canadians Take to Contactless Cards, but NFC Wallets? Not So Much

NFC TIMES Exclusive Insight – While a well-developed contactless card and POS terminal infrastructure and strong consumer take-up of contactless card payments has often been touted as the gateway to use of mobile payments, that is often not the case. Take Canada, for instance.

New York Approves Delayed Contract for Contactless Fare Collection, Clearing Way for Rides with NFC Wallets

NFC TIMES Exclusive Insight – The New York Metropolitan Transportation Authority board has approved a long-anticipated contract to enable riders to pay with contactless credit and debit cards, including cards loaded into NFC mobile wallets, by 2019–the largest transit authority to do so since Transport for London launched open-loop fare collection in late 2012.

Fitbit Chief Plans to Enable Entire Product Line for Payments with NFC; Challenges Lie Ahead

NFC TIMES Exclusive Insight – LAS VEGAS:  Fitbit CEO James Park today said the large wearables maker plans to enable contactless payments across its entire range of devices over the next few years using NFC technology, a move he said he hopes will help make contactless payments “ubiquitous around the world.”

Major League Baseball to Roll Out Availability of NFC Ticketing in 2018, but Will Stadiums Adopt the Technology?

NFC TIMES Exclusive – Major League Baseball in the U.S. may roll out NFC mobile ticketing next year as part of Apple Pay, although it’s unclear how many stadiums or other venues would be involved, sources told NFC Times.

Apple Promotes ‘Everyday’ Commerce for Apple Pay as It Seeks to Increase Transactions

NFC TIMES Exclusive Insight – LAS VEGAS:  As Apple continues to try to address what many observers consider to be a disappointing showing for its now three-year-old payments service, Apple Pay chief Jennifer Bailey played up the theme “Everyday (commerce) With Apple Pay,” during a keynote at the Money 20/20 fintech show Sunday.

Group Representing Big U.S. Banks Plans to Issue Own Tokens for Cards Carrying Major Brands

NFC TIMES Exclusive Insight – The Clearing House, a group of the largest banks in the U.S., announced its first plans to tokenize cards branded by a major network, as the banks seek to reduce their dependence on tokenization by the major card schemes.

Apple Watch Likely to Lag Behind in Tag-Reading Ecosystem

NFC TIMES Exclusive – As the NFC tag industry responds to iOS 11, Apple Watch isn’t drawing much focus, and use cases for tag-reading on the wearable remain limited.

Mobile Payments Contribute to Slow Decline of Cash

NFC TIMES Exclusive Insight – Mobile payments are one of the key factors driving the gradual replacement of cash with card and digital payments, according to the annual World Payments Report released this week by consulting and IT services firm Capgemini and major French bank BNP Paribas.

Apple Pay Finally Signs Up Second Major Bank in New Zealand

NFC TIMES Exclusive Insight – In certain markets, Apple continues to face resistance from major banks, which, among other things, do not want to participate in an Apple-branded wallet. That’s true in Australia and in such major Western European markets as France, Spain and Italy, where only one major bank in each country is supporting Apple Pay.

Wells Fargo Launches NFC-Enabled ATMs, Though Rollout is One Year Behind Schedule

Oct 16 2017

NFC TIMES Exclusive Insight – Wells Fargo, the third largest U.S. bank by assets, made good on its pledge last March to launch NFC-enabled ATM cash withdrawals by the end of this year, although that is one year behind schedule, and Wells Fargo is far from the first major bank globally to support the technology on ATMs, even in the U.S.