Google Wallet substitutes all credit cards, store cards and cash for NFC chip that accesses your accounts with a swipe of your smartphone and a PIN.
Google Wallet is being dubbed as the future of money, and with similar payment systems already up and working in countries such as Japan, it’s very likely that at some point in future, you too will be swiping your smartphone to purchase items.
So what is Google Wallet? Google Wallet is basically an app that allows you to use your credit card, or a pre-paid Google Card to pay for purchases by swiping the phone and entering your pin number. Not only that, it also allows you to buy items with store cards and then automatically adds loyalty points where necessary.
What is Google Wallet?
Using a near field communication (NFC) chip which is embedded in the phone, users can simple wave the phone over any Mastercard PayPass terminal, and the cost is immediately deducted from your credit or Google card and the receipt is stored on your phone. And because Google Wallet requires a PIN to be accesses, it’s actually safer than having a real wallet.
The initial package requires users to have a Nexus S 4G on Sprint and a Mastercard account, those without a Mastercard will have to settle for pre-paid Google cards. Store cards too can only be credited with money from a Google card, not directly from your Mastercard, which limits the transactions.
Another problem for early adopters is that independent shops and family businesses are not likely to pick up the technology for some time, currently only large chains are providing the service for customers. Still it’s certainly got to be useful when paying for a coffee from Starbucks or when taking a NYC taxi.
Google has announced that it will be expanding its Google Wallet network to include Visa, Discover and AmEx, which will no doubt encourage more companies to provide the electronic service in their stores.
In the clip below founders of Google Wallet, Rob von Behren and Jonathan Wall, give a clear overview of how Google Wallet works, and what the future of the app promises.
Google Wallet is currently only available on Nexus S4 G on Sprint, but is sure to hit other handsets and possibly other carriers in the not too distant future.