Money Matters, Simplified.
Google to unveil NFC-powered mobile payment service
by NeelamGoswami - May 25, 2011 - comments
The service will reportedly tap near-field communications (NFC) technology, which lets devices exchange information wirelessly with one another over very short distances, about 4 inches.
Google is set to turn smartphones into mobile wallets. The tech and internet search giant is expected to launch a mobile payment system that will let consumers wave their phones to pay instead of pulling out a credit card, according to multiple tabloid reports, citing sources familiar with the matter.
The latest report follows a Wall Street Journal report in March that claimed Google was partnering with two financial giants, MasterCard and Citigroup, to allow their customers to use their debit and credit cards to pay for purchase from their Android smartphones.
Google’s plan to launch mobile payment system also comes on the heels of Square's launch of a new mobile payment system that lets customers make credit card purchases with an iPhone app.
According to reports, the service will run on the Android operating system and be available on phones from Sprint Nextel Corp. It will also be available on Google’s Nexus S phone and will use a Citibank-issued MasterCard credit card number and a virtual Google MasterCard prepaid card.
Google’s mobile payment system
The sources say Google Inc. will launch a mobile payment system Thursday that will let consumers pay with smartphones instead of traditional credit cards.
According to the unidentified sources, the world's largest internet search engine has joined forces with MasterCard Inc., the world's second-largest credit and debit card processing network, as well as with cellphone carriers, hardware manufacturers and retailers, including Macy's Inc, American Eagle Outfitters Inc and Subway, to launch the service.
Service available on Android-based phones
The word is that Google plans to introduce the service initially in New York, San Francisco, Los Angeles, Chicago and Washington, D.C., helping consumers pay without pulling out the credit card.
According to reports, the service will run on the Android operating system and be available on phones from Sprint Nextel Corp. It will also be available on Google’s Nexus S phone and will use a Citibank-issued MasterCard credit card number and a virtual Google MasterCard prepaid card.
Google uses NFC technology for payments
The service will reportedly tap near-field communications (NFC) technology, which lets devices exchange information wirelessly with one another over very short distances, about 4 inches.
Incorporated into a chip in mobile phones, the NFC technology enables consumers to make payments, redeem coupons, earn loyalty points and receive special offers.
When a phone is waved close to a credit card reader, it wirelessly sends an encrypted signal with a person’s credit card information and then the transaction is processed like a normal credit card transaction at a checkout counter.