Is Google Wallet too late to capitalise on SA’s contactless payments wave?

Technology giant Google has recently launched Google Wallet in SA. The contactless payment method is available on Android phones and Wear OS devices that are capable of contactless payments.

“Access to technology is vital for economic prosperity as millions of people use their mobile devices daily to tap and pay at stores, pay for public transportation and to utilise a variety of passes,” says Google SA country director Alistair Mokoena. “At Google, we have learned that great things happen when technology works for everyone. By including everyone — a dynamic ecosystem of manufacturers, developers and users — we want to make digital wallets accessible to everyone through fast, secure access to their everyday essentials.”

Having an Android device myself, I tested out Google’s claim that setting up the Google Wallet would be easy, and it was.

Once I downloaded the Google Wallet app to my device, I was prompted to set up a screen lock method and enable NFC on my device. Once I’d completed those steps, I added my compatible card, which was verified by my bank, and I was ready to go.

Unlike Samsung Pay, which has been in SA since August 2018, Google Wallet accepts loyalty cards including frequent flyer cards, boarding passes and debit and credit cards, making it more like Apple Pay than anything else.

“Most importantly, security and privacy are built into every part of Google Wallet, making payments safer and allowing people to transact seamlessly and with confidence throughout the day. This will allow users to make transactions using a virtual card number (a token),” says Mokoena. 

“We are very excited about the launch of Google Wallet in South Africa. We hope that people not only enjoy how easy it is to use, but also how secure it is for them to transact their business confidently,” concludes Mokoena.

Google is the last major tech company to launch their contactless payment platform in SA , after Samsung, Apple, Fitbit and local offerings from FNB and alternatives such as SnapScan and Zapper.

With Apple devices claiming only 15.96% market share in SA at March 2022, Google Pay has an opportunity to become the dominant contactless payment method in the country due to its vast availability on a number of Android devices including OPPO, Xiaomi and Samsung.

The true test for Google is whether loyal Samsung users, which account for 48.12% of the country’s smartphone users, will be willing to make the jump to Google Wallet and forego Samsung’s default contactless payment option. With FNB reporting in excess of R4.2bn in contactless payments via smart devices in 2021 versus R640m in 2020, the contactless market looks set to grow exponentially.

Google Wallet is available for cardholders of FirstRand Bank, Discovery Bank, Investec, Standard Bank, ABSA and Nedbank, and will work with their Android phones or Wear OS devices where contactless payments are accepted (in store, in apps or on the web).