Google Wallet The New Way To Pay By Mobile

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Not one to miss a trick, Google recently unveiled their new technology for a mobile payment system designed to make paying for goods and services that little bit more convenient.

Google Wallet

The system is designed to work with its android operating system allowing users of devices to pay for goods and services using their mobile , tapping into MasterCards PaySafe which is described as a contactless way to make purchases using mobile devices such as keyfobs or phones.

Hurdles to overcome:

Currently only around 120,000+ stores accept MasterCard Paypass (the technology protocol that allows such a transaction to be possible) in the US and some 311,000+ globally, we do however see this changing very rapidly in the coming month and years.

Security fears:

Obviously with the wake of issues regarding hacking and security for huge corporations and governments the new developers of technology related to payment systems will need to make sure that personal details and safety are paramount, with so many options to pay for services and goods, that are within agreed safety levels (that in all honesty are left in question with online and credit crad fraud being huge)

There is a danger people will say no if they fear there is no perceived benefit to outweigh the risks.

Nascent industry no clear winner yet:

The battle to be the king of payment solutions for mobile devices is probably a race that is still yet to run, so I do not think that Googles press release has signed any winners by a long shot.

Greg Hammermaster who is the president of Sage Payment Solutions is quoted as saying:

[pullright float =alignright]”It would be challenging to chase [Google Wallet] right now because there isn’t going to be a lot of uses out there,” he said in a phone interview. “It’s such a nascent industry, it is too early to anoint who is going to win or lose.”[/pullright]

The POS (point of sale) solution:

Google is working with VeriFone, Hypercom, Ingenico, VIVOTech to provide the solution to a POS dream for so many years, that is one where people simply do not need any cash at all and can collect reward points and coupons directly on their account that is all contained within one connected mobile.

Stores who are looking to take part in the trial are:

American Eagle Outfitters, Bloomingdale’s, Champs Sports, The Container Store, Duane Reade, Einstein Bros. Bagels, Foot Locker, Guess, Jamba Juice, Macy’s, Noah’s Bagels, Peet’s Coffee & Tea, RadioShack, Subway, Toys”R”Us and Walgreens.

With Hammermaster predicting an adoption rate tailing into the five year mark for the technology to really play its part he recommends that “retailers should focus more on making sure their websites are geared to mobile phone users.” And more importantly being able to accept payments from a mobile website.

The latter part I agree with but the first part I feel could be far sighted as mobile payment solutions could become reality and take on in a much quicker time.

Mobile POS work for retailers right now:

He is however right that at the present time, retailers should focus on accepting voucher type payments from mobile phone credit systems, meaning that they can be anywhere (trade shows, fairs etc and still accept a payment without needing a terminal)

Apple have released the LightSpeed POS and hopes to make instore and out of store payment processing easier and quicker. Imagine being shown around the store by your guide (as In Apple) then when your happy simply getting your phone out to pay there and then….no queuing, no time to say mmmm, maybe not…A retailers dream surely.

There are definitely some exiting times ahead of us in the Mobile Payments arena, and we will be covering all the latest news as and when it happens so stay tuned.

What are you experiences of mobile payments?

Are you relishing the opportunity, fear for security issues…tell all.

Anthony Munns