Google Wallet is a mobile app designed to turn your phone into your wallet. You may have heard of near-field communication (NFC) that lets users swipe an object near a sensor to transmit information. (It’s how Mobile’s speed pass technology works.) And it’s been around for a while. But now the goal is to replace your wallet altogether.
You can store credit cards, coupons, loyalty points, gift cards and more – all on your phone, and all in a secure fashion. Simply tap your phone at the near-field communication device upon checkout to pay. Now, this is one of those technologies that is going to require retailer buy-in. After all, it doesn’t work without the near-field communication reader. Yet, it drastically speeds up the checkout process for increased customer satisfaction and lowers the human resources necessary behind the check-out counter.
To me, there’s no question whether or not this form of payment is going to receive mainstream integration. The question is, will it spur the same sort of credit card wars that Visa, Mastercard, Discover and American Express offered in the 90s. Will it be Google Wallet, Square, PayPal and others fighting for this new territory?