Cash In Your Phone: Out of Your Wallet into Google’s

Cash In Your Phone

I wonder what Alexander Graham Bell would think today if he could see what technology has done to his great invention almost 140 years ago. The once simple two way voice communication device has undergone a metamorphosis into a small  super-power computer-like gadget  that pretty much does everything.

If you thought your phone was valuable before, the stakes just got higher.

Mobile commerce (m-commerce), has been around for several years but has yet to really gain traction until now.

The Google Wallet App has just been released giving your smart phone the added another functionality of being used like a debit or credit card.

The app is the latest to use Near Field Communications (NFC) technology as a mechanism to make payments.

Near field communication (NFC) is a set of standards for smartphones and similar devices to establish radio communication with each other by touching them together or bringing them into close proximity, usually no more than a few centimetres. In the case of m-commerce, customers simply tap their phone  to a vendor’s PayPass reader to pay for items they wish to purchase.

Some of the major retailers on-board in New York and San Francisco are  Macy’s, Whole Foods, and McDonald’s.

MasterCard was the logical choice to partner with Google as they have been using NFC chips on some of its credit cards since 2003 and were the original developers of the PayPass reader.

The launch makes Google Wallet the trend setter for using  NFC technology as mobile payment system in a smartphone.  The usual suspects in the mobile device and credit industry (Apple, Microsoft and Visa) are also looking to launch their own mobile payment services, seeing the value of giving customers the option to make payments to retailers with their smart phones.

Expect to see a little less cash even credit and debit cards in your wallet in the coming years. But you won’t be able to blame the recession for this one. Maybe the Federal Reserve should start printing Smart Phones.

Photo courtesy of  googleblog.blogspot.com

Leave a Reply