Lyft recently announced that it will allow users to pay for rides using Google Wallet. The move by the transportation network company shows that mobile payment options are increasingly leveraged by technology companies, and also that e-commerce platforms have much to gain if they work together.
Lyft enables Google Wallet because of the convenience it provides
Google Wallet was launched in 2011, but did not see wide endorsement from consumers. The technology, which uses near-field communications, is similar to newly launched Apple Pay. Recently, interest in Google Wallet has been renewed as a result of increasing media attention to mobile payment technology, primarily instigated by Apple.
Google Wallet is appealing over Apple Pay in one regard primarily – it works with almost all Android phones. It is thusly convenient for merchants and e-commerce businesses to enable payment with the service. According to The Next Web, Lyft announced that passengers can now pay for rides using Google Wallet. Users can forego entering in their personal information into the app and instead click on a “payment” button, which will lead them to a page where they can add Google’s payment service and pay for their rides that way.
E-commerce platforms can work together and reap the benefits
It is possible that consumers already have their payment information stored in Google Wallet and are not aware of it. Any app purchase from the Google Play Store would have saved payment information with the service. Just in the same way that Google’s various parts work together, Lyft is open to working synergistically with Google Wallet.
According to SlashGear, the transportation network company is allowing users to pay for rides with Google Wallet because it is convenient for them. While not a terrible burden, manually entering debit card and credit card information into apps is mildly annoying. Lyft is aware of this challenge, and people who have a Google Wallet account already won’t have to spend those extra minutes being annoyed. More importantly however, some consumers already rely on Google Wallet for a plethora of other purchases, and for them, using the service to pay for rides is a plus.
The Lyft Android app can be found in the Google Play Store, which is another example of e-commerce companies working together. It is important to mention that if a customer already has their debit or credit card information registered with the transportation app, using Google Wallet will not interrupt that. Lyft will simply list payment options for users so they can select their preferred method of payment each time. Consumers just click on the option they want and authenticate.
Mobile payment technology is great for in-app purchases
Lyft’s use of Google Wallet is similar to how Apple Pay works in conjunction with many apps in the market. Because most retailers have not upgraded their point-of-sale devices with NFC, mobile payment technology is still not usable in many merchant locations. Online, however, the story is quite different. Apple Pay and Google Wallet can work perfectly for in-app purchases, since physical sales terminals are not required. In coming months, the world is sure to see more partnerships and agreements of this kind. Mobile payment services will earn revenues based on the volume of sales that come through the platforms and merchants will sell more. Perhaps in future, mobile payment products will be like credit cards. Instead of Visa, MasterCard and American Express, retailers may soon ask their customers whether they prefer to pay with Apple Pay, Google Wallet or PayPal. E-commerce is growing fast because it is versatile, convenient and allows for mutually beneficial collaboration.