Pay by smart phone with Google Wallet

Keeping up with today’s technology is a definite challenge. Everyday there’s a new way to connect and communicate. Big companies have seen the profit from these advances. Also, they’re all competing to see who can develop better strategies to connect with consumers in a more convenient manner.

Google is about to change the game with Google Wallet.

Meet the future

Since November Google has been working on creating a “pay phone,” which allows users to skip using credit or debit cards and instead pay at stores by flashing their phones in front of checkout registers. Futuristic, right?

This concept actually isn’t too far in the future for Apple since they’ve already made it possible to make PayPal money transfers via the iPhone. Chase and Bank of America have also been collaborating on ways to make mobile payment services possible as well.

How Google Wallet works

To run Google Wallet, your smart phone must be equipped with near-field communication (NFC) technology – a small chip in your phone. Retail stores’ readers will connect to your bank account or credit card and automatically deduct from your account when scanned.

Your virtual wallet

Besides the time needed to equip retail outlets with readers, there’s also the issue of security. Will such a device make consumer’s bank accounts and credit cards vulnerable to hacking? Still, if Google Wallet becomes successful, it could be used to replace drivers licenses, ATM cards and and credit cards, thereby creating a virtual wallet.

Tracking your buying habits

Google Wallet also helps Google grow their advertising business by collecting data about users and how they shop. In theory the company could track you as you go about your daily routine, and use that information about you to promote their advertisers’ products and services. A boon to consumers or an invasion of privacy?

We already live in an extremely virtual world, so is the public ready and wanting of such technology? Texting changed the way people communicate. Facebook changed the way people use the Internet. And now maybe Google has made the first steps to changing the way people shop.

Rebecca Copeland is a college senior at Suffolk University interning at Mom Central Consulting for the summer.

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Picture credit: foto76 at freedigitalphotos.net

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