Google To Begin Mobile Payment
Google Inc. (NASDAQ:GOOG) under a partnership with VeriFone Systems Inc. (NYSE:PAY) might begin mobile payment scheme which will replace credit cards. The mobile payment is part of its aim to make payments easier for people by using mobile devices, which almost everyone carries with them.
The point of sale terminals that are manufactured by VeriFone will be used. These point of sale terminals are found at every store, where they help in making credit card payments. The devices embedded with the near field communications chip, or NFC will be used to confirm the device identity, which will allow for wireless payments. All VeriFone point of sale terminals will be able to receive payments from Google’s Android phones having a NFC chip.
There have been reports that Apple (NASDAQ:AAPL) is including NFC chips into its iPhone upgrade. It is unknown whether VeriFone will partner with Apple to help make payments. No further details have been released by Apple.
Google powers hundreds of different phones with its Android platform. In its newest upgrade, the 2.3 or Gingerbread update, it has also included NFC technology. It has also launched a Google branded phone, the Nexus S with the NFC chips in the market. Other smartphone makers like Research In Motion (NASDAQ:RIMM) too are considering adding this functionality in their handsets.
NFC technology can be used for other purposes apart from making mobile payments wirelessly and be used as digital wallets. This technology can also aid data transfer between two phones, like contact details, files and other information. Application developers can use this technology to create games that can use NFC’s wireless data transfer ability.
Unconfirmed reports suggest that Google is set to test the mobile payment service in a few selected stores of Portland, Ore and New York apart from other places. Google has begun handing NFC embedded posters to shops, where mobile phones with this technology can obtain information from these posters by pushing their phones close to the windows on these shops. Although these did not enable mobile payments possible.
It is unknown how will Google make money from these mobile payments or how will the system work. One way that analysts predict that Google can use these mobile payments to make revenue is by enabling advertisements, which is its core revenue generator. Google could send targeted advertisements to customers who are in the vicinity of the advertiser.
