In December 2024, Google Developer Notes hinted at a full-scale rollout of Google Wallet in various countries, including the arrival of Google Pay in Pakistan.
The contactless payment system, widely celebrated for its ability to store payment cards, loyalty cards, boarding passes, tickets, and NFC transactions, was met with widespread enthusiasm in Pakistan.
Reasons for Limited Rollout
Google’s decision to release a limited version of Google Wallet in Pakistan may stem from:
- Regulatory Challenges: Introducing a payment platform often requires approval from local financial regulators and compliance with financial and data security laws. The current passes-only rollout might allow Google to establish an initial foothold while navigating these hurdles.
- Market Assessment: Google may want to evaluate the uptake of digital wallets in emerging markets like Pakistan before committing to a broader release.
- Infrastructure Constraints: The full functionality of Google Wallet requires a robust infrastructure for NFC payments, merchant adoption, and seamless financial system integration, which might still be evolving in Pakistan.
Impact on Local Digital Wallet Players
Initially, the announcement of Google Wallet’s impending launch was seen as a potential disruptor for local digital wallet players such as Easypaisa, JazzCash, Sadapay, and Nayapay. The functionality of the contactless payment version has ignited much of the optimism still. Pakistani users, excited about the prospect of contactless payments, feel overwhelmed by the watered-down offering.
One user, not sounding very confident, stated:
“Also might I add, like 90% of phones don’t have NFC in Pakistan so it wouldn’t have made a difference to the majority of people anyway.”
However, we think the arrival of the contactless payment functionality will open the door to faster integrations with more features this year.
For now, local players like Easypaisa and JazzCash should plan ahead, knowing they won’t get an easy ride competing with Google Pay—maybe their worst challenge to date.
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I would like to add that Google Wallet still disrupt the digital payment space as UBL pay, HBL Pay, and Jazz pay do offer payment through NFC contactless payment but that is limited to Android devices only. These company don’t offer contactless payment support on Apple devices and hence Google wallet can work as catalyst to process payment on Apple devices.
Secondly, Google wallet would enable customers of other banks to use their card on Google wallet to process payments smoothly.
The Google Wallet concept is different from Google Pay. As per the details shared by Google and it’s partners, they’re enabling mobile contactless transactions in PK, working with FIs in the market to enable users to pay via Google Pay on the POS terminals or online on accepting e-commerce merchants, which will boost digital payment adoption in the country as can be seen in other countries where Google Pay has launched. From the article, I see this enablement is being presented as an “underwhelming” experience; which is on the contrary to what can been from the regional examples.
From my perspective, Google Wallet not launching as an EMI or Branchless Banking wallet seems to be good decision in the sense that the existing FIs keep on providing their service as SVF providers to users and enable their cards to be used on Google Pay; thus, empowering the end-customer to have more flexibility to use their preferred instrument of choice at the time of payment.
P.S. The NFC penetration is estimated to be more than 35% in the banked population, so the market is big enough to welcome a player like Google Pay and help in scaling the adoption of digital payments.
Nothing..John abicel methew..
nice and very good
Of course the entry of Google wallet will help to develop a healthy n competitive competition among the contactless money transfer players , bringing more comfort for customers n reducing the burden on the regular banks.
Now it is the turn of Pakistan,s beaurocracy to provide a comfortable channel for smooth operating.
But now everyone can see that they removed Pakistan from list