Apple Pay vs. Google Wallet: A Brief Competitive Comparison

by Don Reisinger

The public hasn’t gotten a chance to try out Apple Pay to see if it can deliver the security and convenience Apple says it will. That doesn’t mean that it won’t or that it can’t live up to Apple’s promises, but as we’ve seen in the past, first-run products can have their fair share of issues and Apple Pay may reach the market with some kinks to work out.

Google has had more than enough time to work out the kinks in its Google Wallet platform. Google first unveiled the service May 2011 and launched it in the United States in September of that year. While most argue that the Google Wallet platform works reliably, it’ll get a lot more use if and when mobile payments become the norm in the retail world.

Apple has delivered several important security features in Apple Pay. For one, the company’s service requires the use of Touch ID to make a payment, effectively ensuring that someone who steals the device can’t easily make a payment. In addition, the service doesn’t share any personally identifiable information— including credit card numbers—with merchants. Instead, Apple provides a unique payment identifier to hide transaction details and buyer’s identity. It’s a critical security feature that can’t be overlooked when evaluating the two options.

Google Wallet comes with fraud protection. Google says that it’s constantly monitoring its systems to determine whether any fraud may be occurring. In addition, Google Wallet users hit by fraudulent changes will receive a 100 percent reimbursement. A four-digit PIN is also used to unlock the Wallet app and send money.

Those looking for the opportunity to use Apple Pay on a wide range of devices will be disappointed. Because the technology requires both Touch ID and a Near-Field Communication (NFC) chip, it will work only with Apple’s latest iPhone 6 devices. Apple also says that Apple Pay will work with Apple Watch when the company launches that device next year.

Google Wallet is a cross-platform, cross-device solution. The payment service can work on both iPhones and Android-based devices. In the latter case, the devices need to have NFC chips. The Apple version allows for online purchases and gift card transactions, among other features. Overall, Google Wallet casts a wider net than Apple Pay, which might appeal to some customers.

Apple has done a good job of signing up banks and card companies to support its service. Most major cards are accepted, including Visa, MasterCard and American Express. The debit cards issued by some of the largest banks in the world, including Bank of America and Citibank, will work with Apple Play.

At launch, MasterCard was Google Wallet’s top partner. The service is accepted in millions of MasterCard-friendly locations around the world. Google has also signed a deal with Visa to license the company’s payWave system so it can support Google Wallet.

When Apple Pay launches, the service will come with wide support from the retail community. Bloomingdale’s, Macy’s, McDonald’s, Nike and other major retailers will support the service. Apple says that more merchants will come online over the next several months, which should give Apple Pay a strong start in the payment business.

Google Wallet is not only available to make payments or redeem gift cards. It’s also a way to transfer money. Google’s service lets users send money electronically to other parties who are notified as soon as they’ve received the cash. From there, the recipient can spend the money on just about anything they desire. It’s a feature missing from many other payment services but could be an important one.