Probably you may replace the word swipe with tap in the future for paying your bills at the point of sale. This new technology involves change of payment mode from credit card to tapping your a mobile phone.
This Mobile application is Google's baby, which can be installed a smart phone.
This innovative mobile app is known as Google Wallet, makes an Android OS smart phone to pay for your bills by just tapping the phone with the device that is installed at the Merchant's premises which is similar to the present credit card reader.
The communication between the smart phone and the Google wallet supported payment reader at the Merchant's premises is enabled through NFC technology (Near Field Communication technology)
The report on Google Wallet by Google in their official Blog is as follows.
Today in our New York City office, along with Citi, MasterCard, First Data and Sprint, we gave a demo of Google Wallet, an app that will make your phone your wallet. You'll be able to tap, pay and save using your phone and near field communication (NFC). We're field testing Google Wallet now and plan to release it soon.
Google Wallet is a key part of our ongoing effort to improve shopping for both businesses and consumers. It's aimed at making it easier for you to pay for and save on the goods you want, while giving merchants more ways to offer coupons and loyalty programs to customers, as well as bridging the gap between online and offline commerce.
Because Google Wallet is a mobile app, it will do more than a regular wallet ever could. You'll be able to store your credit cards, offers, loyalty cards and gift cards, but without the bulk. When you tap to pay, your phone will also automatically redeem offers and earn loyalty points for you. Someday, even things like boarding passes, tickets, ID and keys could be stored in Google Wallet.
At first, Google Wallet will support both Citi MasterCard and a Google Prepaid Card, which you'll be able to fund with almost any payment card. From the outset, you'll be able to tap your phone to pay wherever MasterCard PayPass is accepted. Google Wallet will also sync your Google Offers, which you'll be able to redeem via NFC at participating SingleTap™ merchants, or by showing the barcode as you check out. Many merchants are working to integrate their offers and loyalty programs with Google Wallet.
With Google Wallet, we're building an open commerce ecosystem, and we're planning to develop APIs that will enable integration with numerous partners. In the beginning, Google Wallet will be compatible with Nexus S 4G by Google, available on Sprint. Over time, we plan on expanding support to more phones.
What techies say about Google Wallet?
Experts say security wise, payments made using our credit cards and Mobile phones are same. Interestingly, Google will not be charging any commission from the bankers, credit card company and the consumers for the service that it provides using Google wallet. The mobile application can also be used by consumers free of cost. Then how Google generates revenue in this business model? That's is really an interesting technique. Google will be using communication ability of a mobile phone which is an edge that a phone has over a static credit card, for its revenue generation.
To illustrate, a Merchant of a particular brand can boost his sales by associating with Google Offers website by providing discount coupons in the google offers website. Google will be charging from the Merchant for this association. Technologically advanced targeting system of Google Offers website will target consumers and provide the offers of the said merchant and attract them to go to the shop of merchant (or alternatively to buy online).
Experts say, google may process the information that it could get from consumers of Google Wallet in an intelligent manner in order to efficiently target the offers which it promotes through Google offers website.
It is reported that google has also plans to transmit offers coupon numbers to the mobile phones installed with google wallet. Cash offers will be given to those who get those coupon numbers through their mobile number when they go to a nearest shop and tap the phone with google wallet device
This will be a win-win situation in a sense that the consumer gets the discount for the product he wanted to buy and at the same time the merchant can boost his sales. In the process, Google will be making more money from the google offers website.
For more details visit Google Wallet