Google created a buzz last week by announcing the termination of its Google Wallet API.
The announcement cites increased competition within the payment industry as the reason for pulling the program:
When we first launched Google Wallet for digital goods, we wanted to make it simple for users and merchants to buy and sell online. The industry has matured a lot since then, providing a number of alternative payment solutions to choose from.
As we continue to evolve and improve our merchant tools to meet new market challenges in the payments space, we are writing to let you know we will be retiring the Google Wallet for digital goods API on March 2, 2015.
Google advises developers to notify their customers and switch to another processing solution as soon as possible. Instructions are provided on removing the integration but no replacement service will be offered. If a buyer attempts a transaction after the March 2nd cutoff point they will receive 404 error notifications.
Google Wallet API for digital goods is only one of multiple payment options. Developers selling apps on the Google Play store or processing in-app payments through Google Wallet will have continued support. Additional services such as Instant Buy, Wallet App, Google Marketplaces, and In-App Payments will still to be offered. There are no hints that Google plans to end any of these programs.
While consumers will still be able to purchase physical goods through Google Wallet and process NFC payments, it’s unfortunate that some businesses, particularly subscription-based services, must scramble to integrate new solutions.
It may seem puzzling that Google is scaling back this feature when mobile payments are gaining momentum but brands like PayPal and Stripe are eager to offer their solutions to new clients.
