Google Reportedly Diving Into Mobile Payment Space

Google Reportedly Diving Into Mobile Payment Space

It took a really long time to get popular here in the United States, but mobile payments are finally starting to take off. Other nations, particularly in Asia, have been using similar techniques for years to pay for groceries and subway rides, but near-field communication (NFC) has taken a great deal of time to mature here.

Now, Google is obviously looking to get into the game. The Google-powered Nexus S is one of the first smartphones in the States to have an embedded NFC chip, and this week The Wall Street Journal is reporting that the company will be joining Citi Group and MasterCard in order to "embed technology in Android mobile devices that would allow consumers to make purchases by waving their smartphones in front of a small reader at the checkout counter."


As with most everything that Google does, customer data and advertising is involved. The project would theoretically enable Google to provide retailers with data about customers and help them target advertising towards them, and this should be profitable given that Google won't be getting a cut of each transaction. Things are reportedly in their early stages right now, but if put into motion, Citi Group cardholders would be able to "pay for purchases by activating a mobile-payment application developed for one current model and many coming models of Android phones." We suspect the term "e-wallet" will become increasingly popular.

Phone owners would also be able to receive target ads or discounts, and from there, Google will sell that to local merchants. The project will also involve VeriFone Systems, and if Google gets their feet wet, it's conceivable to think that NFC will truly take off shortly after. Would you be interested in investing in a phone that can make payments, and moreover, be interested in receiving targeted ads in exchange for discounts? 
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This I am very interested in, plus I have a greater reason to get a new smart phone. I have been trying to figure out if anything but the Nexus S has it built in. I spoke with Sprint on this with the EVO 3D yesterday and have been trying to find it from HTC as well. The Nexus S is supposed to have it by default with Master card and another CC provider. Now I am talking about being to accept credit cards. I have found out though that with a couple of services you can get the attachment slider for credit card reads. One of them is even free, and they get paid per transaction (not to mention the charge is minimal) and they send you the smart phone attachment to.

The main focus of this article from what I get is being able to make payments with it. While my first paragraph is about my interest in receiving payments at the start up I am trying to get off the ground right now, I think the ability to pay with it will be huge. We all carry a cell or smart phone all the time any way. So this added functionality is great from a use as well as a selling point. The fact that I personally use my debit card for almost everything amp's that up as well.

I think this is going to be the new default before long personally. I have also heard a lot of comments about security on this. Where I can see the point these units transmit only when told to do so and when within a range of 4 centimeters. I think a thief for something like this would have to be exceptionally determined to begin with to get within 4 centimeters of my equipment. which is of course directly on my body and to get me to authorize it.

I have also heard as a comment from people regarding the security of this that it would be easier to hack a corporate banking database than to perform said theft from one of these units. They authorize in a singular fashion per transaction and ask for confirmation as well before transaction completion.

I have also been looking at who directly to invest in with this as I think it is going to be the new default as well as the reason more will start using smart phones.

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Real interested, it would be handy to have. People can forget wallets at home but a phone won't leave their side :P

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Security is definitely something I'd think about, but with big name credit card companies behind it, I would *think* they would get a pretty good system figured out before pushing it to consumers. After all, it would not be in the credit card companies' best interest to support something like this if it were prone to fraud.

It would definitely be handy having the ability to pay from my cell and not worry about carrying my purse all the time.

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I never store any accounts or bank stuff on my phone. While I check my accounts I have to input a username and password every time. Mostly for security with a mobile device. 

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