Google launched its Android mobile operating system as an open platform, but the company is being closed in how it is working with Verizon Wireless on the Google Wallet mobile payment app on the Galaxy Nexus, an analyst said Thursday.
"Right now, Google presents its [Google Wallet] solution as a winner-take-all, closed solution, not at all open as it would have most believe," said the analyst, Bob Egan of The Sepharim Group.
Egan, a longtime mobile payment technology analyst, said Google or its semiconductor partner in mobile payments, NXP, has refused to release the API (application programming interface) related to the secure element (SE) that Google is using in smartphones equipped with NFC (near field communication). NFC makes it possible to tap a smartphone at a payment terminal in a store to transfer funds to make a purchase.
The API is needed for developers at wireless carriers such as Verizon and its partners in the Isis mobile payment consortium to be able to work with Google 's secure element in the Galaxy Nexus and other smartphones , Egan explained.
"The really major issue is that Google or NXP has not released the API for anyone (including Verizon or its partners) to [be able to] design into the Google SE," Egan said in emailed comments.
If Google or Samsung, the maker of the Galaxy Nexus, don't release the SE's API, "then one can't really blame Verizon" for not supporting Google Wallet in the dust-up over the yet-to-be-released Galaxy Nexus. An SE contains a user's credit-card information and other personal data, often on a single chip, that is used to verify a purchase separate from a phone's operating system often using a cryptographic key.
On Monday, Google said "Verizon asked us not to include [Google Wallet] functionality in the [Galaxy Nexus] product" after which many reports said Verizon was blocking the app. Verizon quickly denied it was "blocking" the app and said that in order for Google Wallet to work on Verizon phones, the app "needs to be integrated into a new, secure and proprietary hardware element in our phones." Verizon's statement has since been posted on its Web site.
Verizon said it is continuing to discuss the matter with Google.
Google, NXP and Verizon refused to comment on Egan's characterization of the tussle. Other analysts did not want to cast either Google or Verizon in a bad light, noting that mobile payment technology is in its infancy, and that various manufacturers and carriers are predictably going to fight to gain turf.
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