Google Wallet and Google Offers – Shop and Pay Via Smart Phone
Google reveals its latest commerce innovation including Google Wallet and Google Offers. We are going to enter in the new era of shopping experience where you do not need to carry your wallet anymore. Use your smart phone for shopping. Google Wallet and Google Offers are all about mobile commerce. You can load your credit/debit cards in mobile phone and order stuff online. This is an invitation to merchants and echo system partners e.g. payment networks, carriers, banks to join Google to create the next best shopping experience. Google offered mobile and local commerce which combines offers and payments at the point of sale. This makes it easy for partners and third parties to create great consumer experience. Your mobile phone will be your wallet. Just tap, pay and save.
From Paypal and Amazon in nineties, online commerce has grown like crazy. Every merchant is coming from offline to online store and selling products online as well. 10 years ago 70% consumers were not using internet for financial transactions and now 70% consumers are shopping online and are using their credit cards and online account to shop online. Now consumers are very comfortable paying online.
With smart phones, Google is bringing online and offline together using GeoTargeting technology and NFC (Near Field Communication). Payment technology is evolving. Today over 300000 merchant locations are ready (over 100000 in US) for Google Wallet for payments. This is an enormous opportunity to redefine commerce and payments. Google is joining forces with Citi, MasterCard, Firstdata and spring. 2011 and beyond is the age of mobile local commerce. Google is also working with the top merchants brands.
User go to the grocery store. His phone displays the shopping list that he usually buy at the grocery store. It may also have some items that he may have scanned or tapped since the last time he went to the shopping store. He shops and mobile displays hot items, deals or offers that he loves. He can tap that item from phone and get that item delivered the next day to his house from merchant. He pays via phone and get a receipt on his phone.
You can provide offers to consumers with their permission to their phone based on location and transaction history. You can offer different levels of incentives tied to different loyalty and spending levels. That will lead to a much stronger relationship between consumer and the merchant.
With Google Wallet, your phone becomes your wallet. You tap, pay and save money while you shop. Google Wallet uses NFC technology. By 2014 50% of the smart phones in the US will be NFC enabled. It supports multiple cards e.g. Citi MasterCard, Google prepaid card. Google prepaid card can be funded by using any of your existing credit card. In overtime there will be more cards. These services are starting in San Francisco and New york and expanding internationally in the following months.
Google offers include shoppers great deals. Offers will be delivered to your inbox as an offer of the day. You find an offer you want. You save it to your wallet. No more clipping or printing. To redeem offer, tap your phone at the merchant point of sale or you show the offer to the cashier and you check out. These programs will go live in San Fransicso, Portland and New york this summer.
Google Wallet Security
Google Wallet is really secure. One element that makes Google Wallet secure is the smart card chip in the phone (NFC). NXP is in Nexus mobile phone. It is got a lot of protection built into it. It has got temper sensor so if you grab it open it will self destruct. This is where Google Wallet store the credit card information. Its extremely secure so that nobody can access your credit card information. When transaction is made, your transaction data is securely transmitted in between the bank and the secure element in your phone. The secure element is only turned on when the user unlock the wallet and enable that for payment. Otherwise its off. Wallet is itself locked. So there are many security levels for mobile payments.
Again you can lock your Google Wallet so its more secure then the original wallet in your pocket. There are multiple levels of security e.g. phone screen lock, required Google PIN, encrypted credit card security. And the credit card is never fully displayed. So its also secure.
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