Google Wallet, soon to be launched mobile payments system from Google, which aims to make your phone your wallet has surely managed to garner enough eyeballs in the tech community. As expected, it will initially be available on Android only, specifically on the Google Nexus S 4G (from Sprint) and will work over contact-less NFC technology.
How it works?
With Wallet, Google wants to put tickets, credit cards, receipts, coupons, and even your driver’s license in your Google Wallet. When you are shopping at a mall, all you need to do is open the Wallet app, enter the PIN, choose the credit card and wave your phone in front of an NFC chip reader to make the payment. For now, only MasterCard is supported, whose PayPass system is being utilized at the backend of Google Wallet.
Google will not charge a transaction fee!
You read it right. Google will NOT charge a single penny for any of the transaction you do using Google Wallet, though transaction fee (if any) is applicable on your credit card. Google will be taking all the pain to get the partners like Macy’s, Subway, Walgreens, Toys R Us and others on board, but won’t charge you for any of these!
How will Google make money?
Did you say Ads? Not directly. It is through Google Offers. Yes, Google Wallet will come bundled with Google Offers which will send you an “offer of the day” that you can take advantage of by paying with your Google Wallet. Now you know how they plan to make money? Yes, by selling coupons and advertising that come along with the experience.
Google Offers is a direct hit at Groupon, a company they failed to acquire earlier this year. There are a lot of hurdles though, for Google to succeed in this arena. But an exciting space for us to watch out in coming years!