Google unveiled its first steps for Google Wallet, a service that lets you pay for goods and services through your mobile phone. Instead of swiping a credit card, Google Wallet will use near field communication (NFC) to transfer money from your account to a vendor. Advantages include less things to carry and a potentially more secure way to pay. Disadvantages include new types of security threats to worry about. Here’s more info from Google’s blog:
You’ll be able to tap, pay and save using your phone and near field communication (NFC). We’re field testing Google Wallet now and plan to release it soon.
Because Google Wallet is a mobile app, it will do more than a regular wallet ever could. You’ll be able to store your credit cards, offers, loyalty cards and gift cards, but without the bulk. When you tap to pay, your phone will also automatically redeem offers and earn loyalty points for you. Someday, even things like boarding passes, tickets, ID and keys could be stored in Google Wallet.
Remember, these are baby steps from an initiative that will take years to roll out. Try to think of Google Wallet’s potential, not the limited scope of its launch. It’s certainly interesting — especially with the Groupon-like offers Google will implement — but do you guys and gals care? Are you craving for the convenience of paying by phone? Do you dream about carrying less plastic cards? Or is this completely uninteresting to you? Are you down with NFC (yeah, you know me)?!?
It's funny you mention that. A friend of mine was listening to my ranting of how messed up it is that credit card companies are making more money on the sale of gas than we are and he suggested that I contact Google and see if we can set up a "pay at the pump" thing with Google wallet to bypass the credit card companies.
I think the problem is that Google doesn't do the actual credit card processing. This system just allows you to link your existing card or bank account to a wireless virtual "card" on your phone, but does nothing to compete with Visa/Mc/Amex. That's where they have to attack. They should take a page from PayPal and start their own online "bank" without all those pesky bank rules.
-M
I have some ideas, but I'm curious as to how exactly are credit card companies making more money off of the sale of gas?
merchant fees
That was one of my thoughts. The other was people purchasing gas on credit and the credit card companies earning interest off of people not having the actual cash up front to pay off their bills. That didn't seem the likely answer though because that example applies everywhere, not solely with the purchase of gasoline.
I like the idea of this. I don't think anyone was really craving this sort of convenience. Not many people I know think "man I forgot my wallet, but I remembered my phone—shouldn't that be able to pay for my groceries??" These sorts of technological advances solve problems for us that we didn't know we had. This is the sort of thing that can catch on though. Everything seems to be susceptible to a virus or hack anymore, but that is simply the price we pay for leading technology filled lives. If it really wasn't worth the risk then we as a society would show that by not purchasing mass amounts of technology to surround ourselves with in life. This is obviously not the case, meaning the risk of private information being obtained and used for malicious purposes is obviously worth the reward.