A new report by Coleago Consulting, the telecoms consulting firm, says Google is currently in the best position to succeed in the mobile payments market. However the firm has some advice for rivals such as mobile operators and Apple to catch up.  At present Google is “dominant or close to being dominant” in the key criteria of installed based, first mover advantage, ability to innovate, strength in complements and manufacturing allies. The only exception is brand and reputation, although it has partnered with key financial institutions which score well in that category.

Mobile operators can still challenge Google “should they move fast enough”, says Coleago. “A mobile operator alliance in partnership with financial institutions is the combination that is best positioned to challenge Google,” it says.  Paypal is the second choice of partner behind banks for operators. The online payment giant’s position looks weak without such a relationship, says the report.

The other potential player in the payments market is Apple which has some good assets in place but its strategy is currently unclear. It needs to move fast, says the report. “Apple should consider a partnership with Paypal who are already on the sidelines of the battle,” according to Coleago. Such a partnership would provide an increased base of installed customers, boost trust and reputation and might mean Apple could avoid partnering with the banks which might suit it.