Google Wallet
Encyclopedia
Google Wallet is a mobile payment
system developed by Google
that allows its users to store credit card
s, loyalty cards
, and gift card
s among other things, as well as redeeming sales promotion
s on their mobile phone. Google Wallet uses near field communication
to "make secure payments fast and convenient by simply tapping the phone on any PayPass-enabled terminal at checkout."
Google demonstrated the app at a press conference on May 26, 2011. The app was released on September 19, 2011. The app will only be available for the Sprint Nexus S 4G
although Google plans to develop the app for more phones.
The service will work with over 300,000 MasterCard PayPass merchant locations, with VISA licensing their PayWave NFC system to Google for use in Wallet as of September 20, 2011.
4G, but Google plans to produce NFC stickers associated with one credit card each, ostensibly to be affixed to non-NFC-capable phones. Two methods for providing money to the service are advertised, Citi Mastercards and "Google Prepaid Card", which can be loaded using any major credit card. During Google Wallet's unveiling at NYC headquarters, Google also touted the openness of their new system. Naturally, someone asked about what this meant for non-Android phones. “In terms of iPhone, RIM, Microsoft — we will partner with everyone,” said Google VP of Commerce Stephanie Tilenius.
as the initial payment network, and Sprint
as the first mobile carrier. Merchants who accept Google Wallet include: American Eagle Outfitters
, Bloomingdales, Foot Locker
, Jamba Juice
, Macy's
, RadioShack
, Subway
, The Container Store
, Toys "R" Us, and Walgreens
.
In addition, Google Wallet works at other participating MasterCard
PayPass merchants including 7-Eleven
, McDonald's
, Dairy Queen
, Best Buy
, BP
, Sports Authority
, CVS Pharmacy, Petco
, The Home Depot
, Office Depot
, and other retailers.
Google will make money from this by offering sponsored ads to their users. The new app Google Shopperwill push on your phone:
(PIN) or signature. The Google Wallet requires a PIN and an additional security.
Secure Element not only stores data and is required to open the Google Wallet app. The Secure Element memory is separate from the device memory. The chip is designed to only allow trusted programs on the Secure Element itself to access the payment credentials stored therein. The secure encryption technology of the credit card issuing institution protects your payment card credentials as they are transferred from the phone to the reader.
filed a lawsuit against Google and two former employees of PayPal
- Osama Bedier and Stephanie Tilenius. The complaint alleges “misappropriation of trade secrets” and “breach of fiduciary duty.” The lawsuit reveals that Google was negotiating with PayPal for two years to power payments on mobile devices. But just as the deal was about to be signed, Google backed off and instead hired the PayPal executive negotiating the deal, Bedier. The lawsuit notes that Bedier knew all of PayPal’s future plans for mobile payments, as well as an internal detailed analysis of Google’s weaknesses in the area. Not only that, it accuses him of storing “confidential information in locations such as his non-PayPal computers, non-PayPal e-mail account, and an account on the remote computing service called ‘Dropbox.’”
Mobile Payment
Mobile financial services, also referred to as mobile money, mobile payment, mobile banking, mobile money transfer and mobile wallet generally refer to payment services operated under financial regulation and performed from or via a mobile device....
system developed by Google
Google
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...
that allows its users to store credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
s, loyalty cards
Loyalty program
Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially beneficial to the firm....
, and gift card
Gift card
A gift card is a restricted monetary equivalent or scrip that is issued byretailers or banks to be used as an alternative to a non-monetary gift....
s among other things, as well as redeeming sales promotion
Sales promotion
Sales promotion is one of the four aspects of promotional mix. Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability...
s on their mobile phone. Google Wallet uses near field communication
Near Field Communication
Near field communication, or NFC, allows for simplified transactions, data exchange, and wireless connections between two devices in proximity to each other, usually by no more than a few centimeters. It is expected to become a widely used system for making payments by smartphone in the United States...
to "make secure payments fast and convenient by simply tapping the phone on any PayPass-enabled terminal at checkout."
Google demonstrated the app at a press conference on May 26, 2011. The app was released on September 19, 2011. The app will only be available for the Sprint Nexus S 4G
Nexus S
The Nexus S is a smartphone co-developed by Google and Samsung and manufactured by Samsung Electronics. It was the first smartphone to use the Android 2.3 "Gingerbread" operating system, and the first Android device to support Near Field Communication in both hardware and software...
although Google plans to develop the app for more phones.
The service will work with over 300,000 MasterCard PayPass merchant locations, with VISA licensing their PayWave NFC system to Google for use in Wallet as of September 20, 2011.
Availability
Initially, the only phone supported is Sprint's Nexus SNexus S
The Nexus S is a smartphone co-developed by Google and Samsung and manufactured by Samsung Electronics. It was the first smartphone to use the Android 2.3 "Gingerbread" operating system, and the first Android device to support Near Field Communication in both hardware and software...
4G, but Google plans to produce NFC stickers associated with one credit card each, ostensibly to be affixed to non-NFC-capable phones. Two methods for providing money to the service are advertised, Citi Mastercards and "Google Prepaid Card", which can be loaded using any major credit card. During Google Wallet's unveiling at NYC headquarters, Google also touted the openness of their new system. Naturally, someone asked about what this meant for non-Android phones. “In terms of iPhone, RIM, Microsoft — we will partner with everyone,” said Google VP of Commerce Stephanie Tilenius.
Partners
Google Wallet launch partners include Citi as the issuing bank, MasterCardMasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
as the initial payment network, and Sprint
Sprint Nextel
Sprint Nextel Corporation is an American telecommunications company based in Overland Park, Kansas. The company owns and operates Sprint, the third largest wireless telecommunications network in the United States, with 53.4 million customers, behind Verizon Wireless and AT&T Mobility...
as the first mobile carrier. Merchants who accept Google Wallet include: American Eagle Outfitters
American Eagle Outfitters
American Eagle Outfitters is an American clothing and accessories retailer based in Pittsburgh, Pennsylvania. It was founded in 1977 by Mark and Jerry Silverman as a subsidiary of Retail Ventures, Inc., a company which also owned and operated Silverman's Menswear...
, Bloomingdales, Foot Locker
Foot Locker
Foot Locker, Inc. is an American sportswear and footwear retailer, with its headquarters in Midtown Manhattan, New York City, and operating in approximately 20 countries worldwide. Formerly known as Venator Group, Inc., it is the successor corporation to the F.W. Woolworth Company , and many of...
, Jamba Juice
Jamba Juice
Jamba Juice is a chain of smoothie restaurants, headquartered in Emeryville, California, with over 700 locations operating in 30 states, the Bahamas, Canada, Korea, and the Philippines. Over 500 locations are company-owned, with the remainder being franchised...
, Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...
, RadioShack
RadioShack
RadioShack Corporation is an American franchise of electronics retail stores in the United States, as well as parts of Europe, South America and Africa. As of 2008, RadioShack reported net sales and operating revenues of $4.81 billion. The headquarters of RadioShack is located in Downtown...
, Subway
Subway (restaurant)
Subway is an American restaurant franchise that primarily sells submarine sandwiches and salads. It is owned and operated by Doctor's Associates, Inc. . Subway is one of the fastest growing franchises in the world with 35,519 restaurants in 98 countries and territories as of October 25th, 2011...
, The Container Store
The Container Store
The Container Store is a specialty retail chain that sells storage solutions for home and office.On July 1, 1978, The Container Store opened its doors in a small, retail space in Dallas...
, Toys "R" Us, and Walgreens
Walgreens
Walgreen Co. , doing business as Walgreens , is the largest drugstore chain in the United States of America. As of August 31st, the company operates 8,210 locations across all 50 states, the District of Columbia and Puerto Rico. Founded in Chicago, Illinois in 1901, and has since expanded...
.
In addition, Google Wallet works at other participating MasterCard
MasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
PayPass merchants including 7-Eleven
7-Eleven
7-Eleven is part of an international chain of convenience stores, operating under Seven-Eleven Japan Co. Ltd, which in turn is owned by Seven & I Holdings Co...
, McDonald's
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...
, Dairy Queen
Dairy Queen
Dairy Queen, often abbreviated DQ, is a chain of soft serve and fast food restaurants owned by International Dairy Queen, Inc, who also owns Orange Julius and Karmelkorn. The name "Dairy Queen" is taken from the name of their soft serve product, which the company refers to as "Dairy Queen" or...
, Best Buy
Best Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...
, BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
, Sports Authority
Sports Authority
The Sports Authority, Inc. is one of the largest sporting goods retailers in the United States. It is headquartered in Englewood, Colorado, and operates more than 460 stores in 45 U.S...
, CVS Pharmacy, Petco
PETCO
PETCO is a chain of retail stores that offers pet supplies and services such as grooming and dog training. Founded in 1965 and incorporated in Delaware, it is headquartered in San Diego, California...
, The Home Depot
The Home Depot
The Home Depot is an American retailer of home improvement and construction products and services.The Home Depot operates 2,248 big-box format stores across the United States , Canada , Mexico and China, with a 12-store chain...
, Office Depot
Office Depot
Office Depot is a supplier of office products and provides many services. The company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, printing, document reproduction, shipping,...
, and other retailers.
Business Model
Once again, Google has based its innovation on an open-platform. Stephanie Tilenius, Google’s VP of Commerce, invited “payment networks, carriers, and banks to join us in creating tomorrow’s shopping experience”. It means that Google won't charge users and merchants for access to wallet.Google will make money from this by offering sponsored ads to their users. The new app Google Shopperwill push on your phone:
- Today's offers, which allows the user to see a single offer redeemable for discounted goods or services in their area.
- Nearby offers, which allows the user to see a list of offers in the 'Eat' and 'Play' categories that nearby businesses have submitted through Google Places.
Security
A stolen debit card can be used in some circumstance without a personal identification numberPersonal identification number
A personal identification number is a secret numeric password shared between a user and a system that can be used to authenticate the user to the system. Typically, the user is required to provide a non-confidential user identifier or token and a confidential PIN to gain access to the system...
(PIN) or signature. The Google Wallet requires a PIN and an additional security.
- The Google Wallet device never leaves the owners hands.
- Google Wallet stores encrypted user information on a computer chip called the Secure Element.
- The Android device itself can be locked with a personal identification numberPersonal identification numberA personal identification number is a secret numeric password shared between a user and a system that can be used to authenticate the user to the system. Typically, the user is required to provide a non-confidential user identifier or token and a confidential PIN to gain access to the system...
(PIN). - The Google Wallet app requires an additional PIN to activate the antenna of NFC chip.
- The Google Wallet device must touch or be in close proximity to a MasterCardMasterCardMastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
PayPass reader. - Once the transaction is completed, the antenna is turned off. Additional transactions require the PIN to be entered again.
Secure Element not only stores data and is required to open the Google Wallet app. The Secure Element memory is separate from the device memory. The chip is designed to only allow trusted programs on the Secure Element itself to access the payment credentials stored therein. The secure encryption technology of the credit card issuing institution protects your payment card credentials as they are transferred from the phone to the reader.
PayPal Lawsuit
Shortly after launch, PayPalPayPal
PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
filed a lawsuit against Google and two former employees of PayPal
PayPal
PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
- Osama Bedier and Stephanie Tilenius. The complaint alleges “misappropriation of trade secrets” and “breach of fiduciary duty.” The lawsuit reveals that Google was negotiating with PayPal for two years to power payments on mobile devices. But just as the deal was about to be signed, Google backed off and instead hired the PayPal executive negotiating the deal, Bedier. The lawsuit notes that Bedier knew all of PayPal’s future plans for mobile payments, as well as an internal detailed analysis of Google’s weaknesses in the area. Not only that, it accuses him of storing “confidential information in locations such as his non-PayPal computers, non-PayPal e-mail account, and an account on the remote computing service called ‘Dropbox.’”