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Time will tell if Google’s actions are sufficient to mitigate any damage to the company’s reputation caused by the flaw. Todd Ablowitz, President of payment consultancy Double Diamond Group LLC, pointed out that numerous studies prove consumers are “extremely concerned about security as it relates to the mobile phone and payments. … This is their money we’re talking about. So people aren’t comfortable just trusting that the security is good enough. They want to know it.”

Whether the security flaw negatively impacts Google Wallet will depend on public perception, according to Ablowitz. If the flaw is seen as just one of the things Google had to fix during the rollout of Google Wallet, the concerns may fade away, he said. But the opposite development could have far reaching consequences.

“If this gets a life of its own in the public perception, this could be very damaging to Google Wallet and to mobile payments,” he said.

Selling PrePaid E Magazine, February 16, 2012