Google Wallet Mobile Payments Coming Very Soon: What It Means for You CIO.com

“Google Wallet is launching September 19, 2011. Google Wallet is a smartphone application (app) that allows owners of the Sprint Nexus S Android phone to use their smartphone as a wallet. This application or app will transform the way clients pay. Once Google Wallet is installed, the Spring Nexus S phone may be used as a contactless (Tap and Pay) device at all PayPass enabled merchant terminals.”

Google Wallet payment terminals have already been spotted at certain retailers, as well, including a Peet’s Coffee shop in San Francisco, which further suggests the service should launch in the very near future. (See image below.)

Google Wallet uses PayPass, a “contactless” payment service from MasterCard that lets its customers “tap” enabled credit cards, keyfobs and now, mobile phones, to compatible readers at payment terminals to pay for services. Google Wallet, which employs NFC and PayPass, will only work with PayPass-enabled Citi MasterCards and no other credit cards at launch, according to reports. And you’ll need a Google Nexus S smartphone running Android v2.3.4 (Gingerbread), to utilize Google Wallet.

via Google Wallet Mobile Payments Coming Very Soon: What It Means for You CIO.com.

MasterCard Gives Sneak Peek Into Mobile Payments Future | PCWorld Business Center

Google Wallet will work on PayPass terminals already deployed in stores, though some of the terminals will need an upgrade to work with the applications, according to officials at the demonstration. In the U.S., there are about 150,000 retail locations equipped with PayPass terminals, according to Kathleen Reilly, vice president and senior business leader at MasterCard, who said the Google Wallet application will be rolled out “within weeks.”

Up to now, the PayPass terminals have worked with NFC chips embedded in cards or special stickers placed on the outside of mobile devices. However, chips embedded in mobile phones offer big advantages, according to Mario Shiliaski, senior vice president of Innovative Platforms.

“A big advantage is that the chips are embedded in secure elements in the hardware, and if they are compromised they are designed to self-destruct,” Shiliaski said.

In addition, there will be a range of complementary applications for the technology that users will be able to download, Shiliaski noted. Google Wallets will initially offer the ability to store electronic coupons that can be redeemed at retail outlets, he said. Later this year, MasterCard’s inControl will be available for download, he added. InControl is designed to let parents or employers establish parameters for when, where and how their cards are used. Users will get text messages, for example, when certain limits are met.

Major retailers including Macy’s, Walgreens, Subway, Noah’s Bagels, American Eagle, Bloomingdale’s, Peet’s Coffee and Toys ‘R’ Us have signed up to work with Google Wallet.

via MasterCard Gives Sneak Peek Into Mobile Payments Future | PCWorld Business Center.

Will ModoPayments Finally Monetize Check-In? | TechCrunch

It has often been stated that mobile payments are a solution searching for a problem. Indeed, what is the big deal about pulling a card out of your wallet vs. pulling your phone out of your pocket, to transact? Where is the value to drive the mobile payment other than convenience?Modo thinks it has to do with offers and they have integrated a framework for redeeming merchant offers with their payments platform. This makes sense to me. If I had to choose between paying with my Visa card in my wallet or my Visa on my phone that also happens to give me a big discount on the purchase I think the choice is obvious. So right out of the gate, ModoPayments has tied a distinct consumer value proposition to their service in order to drive usage they hope. Google Wallet has a similar concept. It will definitely be a motivator.The platform makes it possible to, in the words of Bruce, “generate a mobile payment transaction at any location that accepts either Visa or MasterCard with no change to POS and no change to the phone that uses ModoPayments.” It can exist as an SMS or native app solution; customers can choose either touchpoint.

via Will ModoPayments Finally Monetize Check-In? | TechCrunch.

Mobile Payments To Triple To $670B By 2015; Digital Goods Will Represent 40% Of Transactions

Juniper Research is releasing a new study today that reports that the transaction value of mobile payments for digital and physical goods, money transfers and NFC Near Field Communications transactions will reach $670 billion by 2015, up from $240 billion this year.The top 3 regions for mobile payments East Asia and China, Western Europe and North America will represent 75% of the global mobile payment gross transaction value by 2015. Digital goods payments will account for nearly 40% of the market in 2015.The research firm says that this growth is driven by the increased adoption of NFC payments, mobile ticketing by retailers, and other transactions made through mobile phones i.e. retailers using payments systems like Square.As Juniper reported recently, global NFC mobile contactless payment transactions will reach nearly $50 billion worldwide by 2014. Juniper says that NFC is steadily gaining traction, and because of the latest rollouts of the technology both in the U.S. and outside the U.S., 2011 and 2012 are expected to be ‘banner years for NFC service rollouts.’Juniper also says that the need for financial access in emerging markets and developing countries will result in active mobile money users doubling by 2013, helping drive mobile transactions.We know that payments companies like Square and PayPal are experiencing major growth in mobile transactions, and we can expect more players to start competing in this growing market.

via Mobile Payments To Triple To $670B By 2015; Digital Goods Will Represent 40% Of Transactions.

Payments Disruption in Action — Payments Views from Glenbrook Partners

Every so often, we can be witnesses to disruptive innovation in action. It’s exciting when it happens – for those who see it. Alas, most don’t see it – although they will eventually. Which pair of glasses are you peering through?For those who can see it, there’s disruptive innovation in action at the moment in the merchant acquiring sector of the card payment system. The pieces on this particular game board are beginning to be moved around.In one case, it’s the result of the combination of powerful technology Apple’s iOS platforms in the the hands of skilled designers and engineers from outside the traditional card payment system. They’re taking a beautiful new and powerful platform and shaping it to accelerate change in a stodgy legacy world. Envisioning a new world that leaves the legacy behind. After all, why not?In another case, one of the important incumbents is reshaping its approach to an increasingly important corner of the market. It’s adapting to the new conversation that market has been having with stakeholders and beginning to evolve its traditional model into a next generation solution.I’m reminded once again of the Albert Camus quote: “Great ideas come into the world as gently as doves.” There’s a bit of fluttering going on – all around. Can you see it, feel it? Are you adapting/adjusting or just sailing along?

via Payments Disruption in Action — Payments Views from Glenbrook Partners.

because we think …: Google wants to own your Wallet…

Yesterday’s launch of Google Wallet was an important moment for the payments industry. Google announced an app that will turn shoppers’ phones into their wallets. Google Wallet enables consumers to store their credit cards, coupons, loyalty and gift cards securely on their phone, so they can pay, redeem offers, and earn loyalty points – all with a single tap of their phone. It is in a field test now and will be available to all consumers this summer.�But what makes this so unique is that– it’s putting the wallet in a single app on your mobile phone.�Google Wallet has been designed for an open commerce ecosystem. Since Google Wallet is a mobile app, it can do more than a regular wallet ever could, like storing thousands of payment cards , loyalty cards, gift cards, receipts, boarding passes, tickets, and Google Offers. Every offer and loyalty point can be redeemed automatically with a single tap via NFC.�In partnership with MasterCard, First Data, Sprint, Citi, Google wants to move your wallet into your phone. Google Wallet is not a simple replacement of an ordinary wallet; it is an example of the ‘Wallet of the future’.�Here is the product launch Video.Stephanie Tilenius, vice president of commerce at Google, announced at the launch “We are about to embark on a new era of commerce. We believe that 2011 will be the year of mobile local commerce. Just TAP, PAY and SAVE”. She said “The world of commerce is ripe for a new wave. We are on the verge of major shift in payments and therefore commerce. Google is uniquely positioned to bring about this shift and accelerate.”�Google Wallet is coming together of Mobile and Local Commerce. It brings together Merchants, Payments Network, Carriers, banks and other pieces of ecosystem to make this possible.�There are over 3 billion mobile phones worldwide. Over 40% of the world’s population carries a mobile phone, far more than use a computer or have access to internet. Mobile Phone is fast emerging as a ‘preferred’ transaction medium. Smartphone sales grew 72% in 2010, and 300 million smart phones sold in 2010 globally. Many other forces accelerating the pace of customer adoption.

via because we think …: Google wants to own your Wallet….

Google Unveils Wallet And Offers: An Open Platform For Mobile Payments

Important development with profound ramifications for Moneeey Inc, …. enabling offers and payment using granular money substitutes

…With Wallet, you’ll be able to add your existing credit cards though only Mastercard is a partner right now of the major card companies. And it’s a wallet you can lock, Tilenius notes. There are multiple levels of security. There’s the phone lock, a required Google pin, credit card information encryption, and your credit card number is never fully displayed.Right off the bat, Google Wallet will work with Mastercard Paypass. This means right now 300,000 merchants around the world and 120,000 in the U.S. are technically ready though it’s not rolling out everywhere yet. It will initially work with “Gcard” a Google pre-paid card set up by Mastercard.The initial trials will be in San Francisco and New York. Tilenius says this will expand nationally in the coming months.The other component of the announcement is Google Offers. These work seamlessly with Google Wallet. You find an offer you want, save it to Wallet with a click and you’re ready. You can redeem them by tapping the phone at the point of sale. Or you can show the offer to a cashier.Initially, Macy’s, Subway, Walgreens, Toys R Us, and more are partners. The first trial programs will be in San Francisco, New York, and Portland this summer.Tilenius notes that the first offers will be “offer of the day” but notes that “this is just the tip of the iceberg.” Eventually, there will be check-in offers, offer ads ads on Google that are really offers that you can easily transfer to Wallet, and others.

via Google Unveils Wallet And Offers: An Open Platform For Mobile Payments.

Paypal Is About To Get A Bruising From Facebook And Square

2011 is going to be a big year for payments, with more startups and mature companies getting funded in the space than almost ever before. It’s important to make the distinction between the headline chasers, the slow moving giants struggling for a piece of the pie and the companies that have a chance at real disruption. For my money Facebook and�Square are both very interesting companies to follow in this space.

In�my last post on TechCrunch I discussed Google and Apple and their efforts around payments, and explained why I don’t yet think they are serious players for the whole payments pie. The post ended with some ideas around what serious contenders could look like, and who are other potential large companies that could step into user-to-user payments.

via Paypal Is About To Get A Bruising From Facebook And Square.

AT&T, Verizon, and T-Mobile make plans to replace credit cards with smartphones | VentureBeat

Soon you’ll be able to make purchases in the U.S. by waving your smartphone, if AT&T, Verizon, and T-Mobile have their way. The carriers are partnering for a joint venture that will aim to displace credit and debit cards, sources familiar with the matter tell Bloomberg.

According to the sources, the carriers may work with Discover Financial Services and Barclays to develop a smartphone payment system in Atlanta and three other cities. They’ve also been seeking out a CEO to spearhead the venture.

The effort would compete directly with the likes of Visa and Mastercard, which together currently handle 82 percent ($2.45 trillion) of consumer spending on cards, according to the industry newsletter Nilson Report. The venture would be a boon to Discover’s payment network — which is currently ranked fourth in the U.S. Barclays would be the bank helping to manage the accounts.

The sources also say that AT&T and Verizon, the two biggest carriers in the country, are equal partners in the venture, while T-Mobile has a smaller stake.

While it would be something new in the U.S., similar phone-based purchasing systems already exist in Japan, the U.K., and Germany.

Not surprisingly, the companies involved aren’t saying much about the venture. AT&T’s Mark Siegel said that “mobile payments are the logical next step for consumers”, but then went on to say — along with Pete Dobrow of T-Mobile — that there was nothing to announce. Kevin Sullivan of Barclays said “facilitating mobile payments is a big part of Barclaycard’s strategy globally.”

Retailers may find the phone-based solution a savior from the interchange fees (also known as “swipe” fees) that card companies charge on debit and credit transactions. Said fees usually amount to 1 to 2 percent of every transaction, and end up exceeding $40 billion a year. There aren’t any details about the fees that the phone payment venture will charge, but it’s very likely that they will be much lower than typical interchange fees in an attempt to woo retailers.

via AT&T, Verizon, and T-Mobile make plans to replace credit cards with smartphones | VentureBeat.

In Silicon Valley, Forget Your Wallet — But Not Your Phone – Digits – WSJ

Two pilot programs by start-ups in Silicon Valley are testing ways to bring to market a long-promised innovation of the Internet era: the digital wallet.

In one, eBay’s PayPal online payments business is equipping some 2,000 of its own employees in San Jose with stickers from a company called Bling Nation that turn any phone into an instant payment device just by tapping it on a sensor. (The sticker tags have small chips in them that can be read by a machine that looks like a normal credit-card swiper.)

Bling Nation is outfitting all of the cafeterias on PayPal’s campus, as well as about 35 other merchants in the area, with readers for its system. PayPal doesn’t have a financial interest in Bling Nation, but the company is using PayPal accounts and technology to fund purchases made through its system.

In the other experiment, a startup called FaceCash has set up a deal with about a half-dozen businesses in the Palo Alto area — including Subway restaurants — to accept its own online payments system instead of cash. FaceCash users download an app for their smartphone, and pay their merchant from a pre-paid account by showing the cashier at the store a unique barcode on the screen of the phone.

The efforts face an uphill battle in convincing consumers and merchants that using their technology is cheaper and more convenient than swiping a credit card. Both companies say it is cheaper for merchants to use their systems than traditional credit cards.

With the proliferation of smartphones, the time might be right: Starbucks is also running a pilot — only at Target stores, and in Seattle and (you guessed it) Silicon Valley — that allows customers to use its iPhone app to make purchases in some coffee houses.

via In Silicon Valley, Forget Your Wallet — But Not Your Phone – Digits – WSJ.