Mobile Wallet
Technology is everywhere in our society today and is now moving to our wallet. Soon the days of paying with cash or swiping your credit card will be a thing of the past. Many companies are developing systems that will allow people to pay for goods or services with a text message, email, or a wave of their cell phone.
Google recently released its newest creation, Google Wallet. This new service uses Near Field Communications (NFC) technology. “[NFC] technology is a short-range tool that operates on wireless frequencies similar to RFID chips and tags. It works by connecting a user’s mobile device, equipped with an NFC antenna or specially programmed SIM or SD data card, to a receiver, usually a few feet away.”(1) Currently Sprint’s Nexus S mobile phone is the only phone with the technology but if the program is successful more phones will follow. Google Wallet is funded by either a prepaid Google debit card that can be reloaded by any credit card, or a Citi MasterCard. Google also plans on adding Visa, Discover and American express to Google wallet. To pay for a purchase a user just needs to wave or tap their phone on the stores PayPass unit and the funds are taken from their card. (2)
Starbucks recently launched their own version of mobile paying. Customers simply need to download the Starbucks app and have a pre-loaded Starbucks account. To pay for their purchase the customer just needs to scan the Starbucks application barcode that appears on the screen of their mobile phone. This service is currently available at 6,800 US stores and all 1,000 Starbucks in Target stores.(3)
Chase bank is another company that is taking advantage of ever increasing levels of technology. Chase now has a program called Person-to-Person Quick Pay. Quick Pay allows people with or with out a Chase bank account to send and receive funds from virtually anyone with an email address that is enrolled in the service. Customers just need to go to Chase.com and sign up for the free service. To send or receive money a person just needs to log on to their account, either on a computer or mobile phone, and send an email or text message. It is a secure service because no account number or social security number is required to make a transaction.(4)
As shown, mobile payment is a convenient way of paying for goods and services. At present this service is just in its infancy but is consistently growing as companies, banks and mobile phone providers realize its benefits.
2. USA Today “Test run: Google Wallet’s tap-and-pay system is simple” Baig, Edward; Sept. 22 2011, Nov. 6 2011, http://www.usatoday.com/tech/columnist/edwardbaig/story/2011-09-21/ed-baig-google-wallet-review/50500628/1
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