One of the biggest trends in 2011 is the mobile wallet, and Microsoft Corp. wants in. According to sources, Microsoft is currently developing its near field communication-enabled hardware for Windows Phone. Like Google Inc.’s NFC offerings reported earlier this week, the Windows Phone version will similarly allow users to swipe their handset at checkout to pay.
Microsoft’s goal is to include mobile-payment technology in all of its future Windows Phone smartphones. Those familiar with the situation told Business Week the precipitous for the feature was Google’s movement towards mobile payments and its plan to include NFC apps in future Android smartphones for payment. Microsoft hopes to narrow the competitive gap by releasing hardware with NFC chips embedded within new hardware sometime this year, sources say.
The main difference between Microsoft and Google’s NFC plans is evident in the strategy in marketing the technology. Google has announced partnerships with Mastercard, Verifone and Citigroup, whereas Microsoft is currently said to be including NFC features with no partnerships in sight.
Similarly, Google itself  implemented a NFC chip within its Nexus S phone without any kind of partnership or widespread promotion. The move garnered little pickup and attracted little support. This time around, Google is working on a cross-promotional campaign to raise awareness of mobile payment opportunities in partnership with major credit providers.
Will embedding a NFC chip be enough for Microsoft to break into the mobile payments field and help to grow its shrinking market share?
Since it seems like Google and potentially Apple Inc. will do all the heavy lifting when it comes to educating the public on NFC possibilities and working with credit card vendors, perhaps Microsoft will see some residual benefits. Will it be enough to boost Microsoft’s shrinking 5.5% mobile market share? Only time will tell.
