As if Words With Friends wasn’t enough, there is yet another reason to not throw our phones against the wall when we’re angry: Last month Google announced the launch of their newest product, Google Wallet - an Android app that makes your phone your wallet. It will store your credit cards, rewards points, coupon offers, and more.
The app, which is currently out and about in New York and San Francisco and is on track to expand to the rest of the country by the end of summer, relies on near field communication, or NFC, to work. Customers simply tap their phones by a reader at participating retailers and their transaction is completed quickly and easily. Currently Macy's, American Eagle and Subway can now accept mobile payments from Android users in these cities, with more retailers expected to follow suit. When customers tap to pay, their phones will also automatically redeem offers and earn loyalty points for them. Called “Google Offers,” this point-of-sale searchable coupon element to Google Wallet is a blatant (half off) cocktail thrown in the face of Chicago-based coupon giant Groupon, who rejected Google’s $5.3 billion dollar advances this year.
The Location Based Marketing Association’s latest podcast suggested that it will ultimately be the carrier who will drive Google Wallet and determine its success or failure. For now, Google Wallet will only be available through Sprint on the Nexus S 4G, but the company plans to expand support to other phones over time. In addition, currently only MasterCard users can make their phones into Google Wallets. Google, however, plans to keep expanding and providing broader access.
Security may be an issue too, but Google seems to have countered worry so far by requiring a 4-digit PIN to be typed into the phone before making a sale to prevent unauthorized access to your accounts. Ideally for Google, customers will view this as the same level of security associated with their debit cards: sure, somebody could steal your card, but if they don’t know your PIN they can’t get your money. But in the end, it is uncertain whether customers will embrace the technology or not. Is Google Wallet another logical step in the progression from bartering, to coins, to dollars, to plastic? Or is it too much for customers’ comfort?
Either way, Google Wallet is and will continue to be a fascinating study in the possibilities of NFC. As of now, NFC is kind of like the human brain - overflowing with possibilities, but we’re only using a small percentage of the enormous potential that is available. NFC has the ability to revolutionize marketing, as well as the daily life of humans. Think about all the time you spend typing your information into sign-ups on websites, at trade shows, and beyond. What if you held that information on your phone, and could just tap it anytime you want to register for something? If customers are on board and this technology continues to expand, eventually all receipts, boarding passes, tickets, and even keys could be tied into the Google Wallet. We know we’ll be watching to see how the trial runs go this summer.
Permalink: http://www.mobiten.com/blog/2011/07/05/new-google-wallet-rely-nfc