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Bloomberg Businessweek reports that despite the fact that Google has spent more than $300 million to acquire startups that were in the digital payments space, and devoted hundreds of developers to its Google Wallet mobile software, consumer reaction has been apathetic. Here's how Bloomberg frames the story:

"Wallet has been downloaded fewer than 10 million times in the two years since its launch, according to Play, Google’s app store.

"For Google, the goal wasn’t to generate fee revenue from the transactions, as banks, PayPal, and other companies do. The idea was to collect data on consumer habits and target ads to them. Google pays such high fees to the credit-card companies it works with, though, that it loses money on every transaction, says Osama Bedier, who stepped down as head of Wallet on May 20 and will shortly leave the company.

"Google declined to disclose how much it’s invested in Wallet, which uses a phone to store credit- and debit-card information. More than half a dozen people close to the company say it’s reconsidering or has abandoned projects designed to broaden Wallet’s appeal."
KC's View:
Yikes.

I'm sure there are folks out there who use and love Google Wallet. But while I've always been sort of aware of its existence, I have to be honest here - I can't remember ever having received an email or any other sort of entreaty suggesting that I use it. (Not that I could; apparently, only Sprint Nextel users can use it on their cellphones, since Verizon, AT&T and T-Mobile block it from their equipment. Maybe that's why.) And nobody has ever made the case for why I should want it.