If you think that the phone has it all these days—music player, apps, reader, navigator, think again. Google has introduced a new feature to the already multifaceted phone: it can now be used as a wallet.
Google launched a “new” concept, which it calls Google Wallet (although it is apparently a relatively well and widely used concept in Asia and parts of Europe). The idea behind Google Wallet is simple—it is looking to replace your physical wallet and change the way consumer spend by discouraging cash-based transactions. Google Wallet stores the data of your credit card on the mobile phone (or you can transfer from your checking account to the Google Wallet account) in a quest to make transactions easier. They claim this will cut out the time spent fumbling for credit cards, getting discounts on coupons, adding points to your rewards system cards etc. Google Wallet aims to be a one-stop alternative to a wallet—therefore, when you pay at CVS for example, you can use the Wallet to simultaneously pay, add points to your account, and redeem any discounts or offers that could be specifically tailored for you at the time of check-out.
Security of course, is of prime concern with new features such as Google Wallet. It uses a new technology—Near Field Communications software, which claims to be secure and allows activation only through a personalized four-digit code, much like using your ATM pin.
The main problem with this concept is that it is currently very limited in offering—only Sprint’s Google Nexus S phone has the technology. In addition, most businesses are still to adopt the form of payment to process transactions and have not installed the technology widely. Other problems of course are issues around security, especially if the phone is lost or the data is somehow hacked into while a person is actually carrying out a transaction. And on a practical level, you will only have a Wallet until your phone has battery!
While there is a definite future for such a technology with all things progressing towards mobile, security and logistics will remain key concerns that Google will have to continue improving upon.
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