Google Offers Is Springboard for Wallet Use

By Clint Boulton  |  Posted 2011-05-28 Print this article Print


What Bedier demonstrated is how Google Wallet will work when it rolls out in New York and San Francisco this summer.

During the event, Stephanie Tilenius, Google's vice president of commerce, described a more interesting scenario where merchants provide offers based on the user's location and transaction history.

For example, she said a shopper will be able to go to the grocery store and have a shopping list based on her purchase history pop up on her smartphone. As the consumer shops, she learns that there is currently a $1 discount for a type of apple pie she likes.

Moreover, she learns that Calamatta olives she wanted are out of stock. With a quick tap on her phone, she can have the olives shipped the next day from the merchant's Website.

When the shopper checks out, she taps the phone to the sales terminal and earns loyalty rewards. After she pays, she receives a digital receipt, which is stored in Google Wallet.

"This vision will take awhile to come to fruition," Tilenius allowed. Perhaps not too long, if Google can lure shoppers to Google Wallet with its Offers local deals service.

By 2014, half of the smartphones should be NFC-enabled, which means Wallet may be available on as many as 150 million handsets. If Google adds retailers and credit card merchants to Wallet, this could be the country's first truly successful and lucrative mobile payment service.

Google isn't charging retailer partners, which in addition to American Eagle include Macy's, Subway, Walgreen's, Toy's "R" Us and others, for Wallet. The app is also free for consumers.

Google will make the bulk of its money from mobile payments by advertising its Offers deals across its relevant properties, including Google Places. Google will also take the industry-standard 50 percent cut for Offers deals that are redeemed, with the difference going to the merchant of record for a deal.

While the service is available via only one smartphone now, Tilenius said it will expand to other Android phones and even platforms such as Apple's iPhone, RIM's BlackBerry and Microsoft Windows Phone.



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