Google, Inc. is teaming up with MasterCard Inc. and Citigroup Inc. to add new technology to Android powered phones. This technology will make it possible for consumers to pay for purchases by waiving their Android powered device in front of a small reader at checkout.
Google is aiming to make mobile payments easier to help boost their advertising business. This new system would allow Google to offer details to retailers concerning their customers so that retailers can target ads and discount offers to customers nearest their stores. Google, however, isn’t expected to get a cut of the transaction fees.
At this time, the project is still in its early stages. However, it will allow holders of Citigroup issued debit and credit cards the ability to pay for purchases by activating a mobile payment application that will be available on many upcoming Android devices. Overall, the idea is to turn smartphones into an electric wallet, while also giving users the ability to look at ads and discount offers available near them, and manage their credit card accounts.
This new venture will also involve VeriFone Systems Inc., who makes the credit card readers that you see at most cash registers. VeriFone would need to roll out more contact less devices so consumers will be able to pay just by tapping their phone against the reader. The credit card readers also involve NFC (near field communication) technology, which is already in places at many stores nationwide, along with many of Google’s Android powered devices.
The Google-backed system, is expected to be released later this year. It marks the latest effort to broaden the uses of smartphones for everyday activities. Wireless carriers like Verizon Wireless, AT&T Inc. and T-Mobile USA had already stated last fall that they would team up on a venture, called Isis, to enable customers to pay for goods with their smartphones.
With this new technology it will make it quite a bit easier for consumers to shop and pay for their purchases with out the needed hassle of searching for the card they want to pay with or the chance of leaving their wallet behind. Also it will give consumers the ability to find the best deals and discounts in their area. Overall, this venture will be opening up a lot of possibilities along with making everyday life easier.