There are those who would see Google Wallet in the same light as the “Smart Card” that was supposed to take over plastic payments at the beginning of the last decade. Even the impact of the “contactless card” that was introduced under the brands MasterCard PayPass, Visa PayWave, Chase Blink, etc. didn’t live up to the hype associated with their release. But those of us in the industry knew that the introduction of NFC (Near Field Communication) technology had more to do with the future than just simply giving consumers the ability to “tap” or “wave” a card instead of swiping it.
What is Google Wallet?
Put simply Google Wallet is an app that will allow you to store your credit card accounts, offers from retailers, loyalty cards, gift cards, etc. into one place without the bulk of a real wallet. You would then load the Google Wallet app to a smart phone thus enabling you to leave home, armed with your phone and little else. Your cell phone which is enabled with NFC capability could then be used to make purchases at the point of sale with any account you choose. You checkout as you normally would but instead of reaching for your wallet you simply reach for your phone, tap your Google Wallet app, enter a 4-digit pin number and tap it at the point-of-sale device on the counter.
So why will Google Wallet be different from any of the other new technology that was supposed to change the way we make purchases?
I believe the biggest difference is that Google Wallet will actually improve the way we do business. Merchants want to make it easier for you to do business with them. Early research by marketing experts cited the fact that even a teenager going to the beach for the day might walk off and leave their house keys, their checkbook, their credit cards, and maybe even their Ipod. The one thing that would absolutely not be left behind would be their cell phone. By turning this little device into another method of payment retailers have opened up a whole new world of possibilities. Imagine you are trying to decide where to go for lunch so you pull out your Iphone, search for restaurants in your vicinity and an offer from Subway pops up, buy one sub get one free. You click “add to Google Wallet”, pull into the closest Subway location and not only do you have your credit cards available in your GW account but the “buy one, get one” coupon is also there waiting to be redeemed. The possibilities are limitless.
As much work as Google, Citi, MasterCard & Sprint have put into this product launch, I’m proud that we’re part of the First Data family. Without First Data the infrastructure and technology to make all this possible would be non-existent. In a competitive industry where merchants have literally hundreds of processors and merchant service companies to choose from, one name consistently stands out as the leader in pioneering payment processing beyond the transaction. In my office we’ve made a point to install the new “contactless” equipment in all new merchant accounts as well as upgrading existing merchants as the opportunities present themselves. Only time will tell but I believe that you will see apps like Google Wallet emerge and become commonplace. This time next year as you stand in line to pay for your groceries you might see more cell phones being used for payments than credit cards. If that sounds strange just think if I had told you in 1975 that you would see plastic cards being used for payments instead of cash. To show how consumer opinion is evolving, at the Google Wallet Press Event it was revealed that 70% of consumers said that they would never use the internet for financial transactions in 1988. In 2009 however, 70% of consumers regularly access their credit card accounts online. Yes, consumer opinion is always evolving and I have a feeling we’re just getting started.
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