Google officially announce their mobile payment platfrom called “Google Wallet”. Google Wallet is a payment system that will basically turn your smartphone into a credit card wallet. Google Wallet platform is an “open platform” in partnership with Citi, MasterCard, Sprint and First Data; a payment processing company.
By definition Google Wallet is an “open platform” that will turn your phone your wallet. It will store digital versions of your existing credit cards into on your phone. The Google wallet mobile app will be a live app on Nexus S 4G from Sprint, another requirement for the Google Wallet is the phone must have the near-field communications (NFC) chip, which is being used in passports, tap-to-pay credit cards, key-less cars and hotels. Google Wallet is currently in field test, so don’t be surprise of you saw someone leaving with their grocery after waving and tapping on their phone.
Google Wallet will support two kinds of credit cards, the Citi® PayPass™ eligible MasterCard® and the Google Prepaid (debit) Card. Google is planning to make the Google wallet mobile app to other smartphones (with NFC) in the future.
So how does it Google Wallet works?
Since Google Wallet Support MasterCard and Google Prepaid Card, here’s how it works for each card.
If you are a Citi MasterCard holder, when you first launch the Google Wallet App, you will asked to connect your Google Wallet to your Google account, then your credit card information. Citi then verifies the card via First Data, which then “provisions” (approves) the card to be used by your phone. When done, you can just tap your phone to pay.
With Google Prepaid (debit) Card, the process is similar but you can add more fund to your Google Debit card using any credit card that you have. When you activate your Google Debit Card in Google Wallet, Google will even pay for the first $10 that you spent with Google Wallet. You will also be able to use Google Wallet on PayPass-enabled terminal.
The big question now is the Security?
Everyone (including me) is concern about the security of our data and our credit card information. Google said that Google wallet is far more secured that the traditional credit cards and wallets.
When you’re paying via Google Wallet, you will need to input your Google Wallet PIN before you can complete the purchase. Also, Google Wallet will store an encrypted copy of card information, so your credit card information will not be completely displayed on your phone.
So even if you lost your phone or stolen, your Google Wallet and credit card information is still secured.
If Google Wallet takes off, Google plans to replace your replace your leather wallet to Google Wallet, carrying your IDs, Passport, Boarding passes, keys to your house and cars and this may even serve as your bank book!
Source: Google Blog
Last modified: May 26, 2011