NEW YORK—Google May 26 introduced Google Wallet, the search engine's long-rumored mobile payment service. The free service, unveiled at an event at Google's sprawling New York office, includes a free Google application that users can download to tap their phone and pay for goods from participating merchants, such as RadioShack. Citigroup and MasterCard are providing the mobile purchase services, which will be enabled by special point of sale registers equipped with near-field communications (NFC). NFC is the wireless technology that enables devices equipped with special chips and sensors to communicate when brought in close proximity to one another. Though little used in the U.S., Google officials said they expect NFC to roll out on 50 million smartphones in the next few years. Sprint is partnering with Google to offer its Samsung Nexus S 4G smartphone for this experimental service. The Nexus S 4G, which includes an NFC controller chip from NXP, runs Google's Android 2.3 "Gingerbread" operating system, which includes native NFC support. Google Wallet is coming to New York and San Francisco in a trial run this summer, with expansion to additional cities and smartphones in the future. Coca-Cola vending machines and even taxis are PayPass-enabled, including major outlets such as CVS, Jack in the Box, Sports Authority and Sunoco. Take this picture tour of the service in this eWEEK slide show, which we composed live from the event.
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Google Wallet
This is the Google Wallet logo, which should not to be confused with the now defunct Google Wave service.
Take Me to Your Leader
Google Wallet is led by Stephanie Tilenius, vice president of commerce and payments at Google. Google poached Tilenius from eBay, where she last served as senior vice president of eBay North America and Global Product. Prior to that, she served as general manager and vice president of PayPal Merchant Services.
Team Effort
Citi and MasterCard are providing credit card and prepaid card services for Google Wallet. Verifone Systems is making the checkout terminals. VIVOtech is supplying the NFC readers. Google hopes additional banks, payment networks, mobile carriers, handset manufacturers, point of sale systems companies and merchants will join the initiative.
Wallet Security
Security of such a service is an essential factor. To wit, Google Wallet requires an app-specific PIN. Initially, all payment card credentials will be encrypted and stored on a chip, called the secure element, which is separate from the Android device memory and is only accessible by authorized programs.
Phone, Chips
Here's the Sprint Nexus S 4G and NXP secure element chip that fuels secure transactions for Google Wallet.
PayPass
Google Wallet will support MasterCard PayPass, the service that enables consumers to tap to pay. Google Wallet will ultimately be usable at more than 124,000 PayPass merchants in the U.S. and more than 311,000 globally.
SingleTap
Google is also building a SingleTap service that lets shoppers pay for goods using a credit card or gift card, redeem promotions, and earn loyalty points with one tap of their phone. Google is working with VeriFone, Hypercom, Ingenico, VIVOTech and others to develop these point of sale systems. Retailers participating in the new SingleTap experience include American Eagle Outfitters, Bloomingdale's, Champs Sports, The Container Store, Duane Reade, Einstein Bros. Bagels, Foot Locker, Guess, Jamba Juice, Macy's, Noah's Bagels, Peet's Coffee & Tea, RadioShack, Subway, Toys "R" Us and Walgreens.
A Look
Here is a look at the Wallet app on the Nexus S 4G, with Citi MasterCard support.
Gift Card
Here's a peek at a MasterCard gift card in action on Wallet.
Google Offers
Google Offers, the local deals service and Groupon rival, also was launched to complement Google Wallet. Whenever a shopper buys or saves an offer, it will automatically sync to Google Wallet. The Google Offers service has been in serious testing in California, New York and Portland, Ore., for a few months.
Revenue from Ads
Everyone wants to know how Google will make money from Wallet. Since Google is not taking a cut of any transaction, it's going to rely on ads tied to Offers local deals. Google will also take a 50 percent cut from redeemed Offers coupons, which is the standard that Groupon and LivingSocial set.
From Sports Tickets to Restaurant Deals
Offers will range from restaurant deals to event tickets, such as the baseball game offer you see here.
American Eagle Lands
Here is an example of an American Eagle deal from Google Offers.
Saved Offers
Offers are saved and stored in the mobile app on a user's phone for easy recovery.
Redeeming Value
Here is how a Google Offer is redeemed with the Google Wallet service.
At the Point of Sale
The offer gets redeemed at the point of sale terminal. Here is what the service representative's screen looks like.
Scanning Coupons
Eventually, users will be able to use the NFC capabilities in their Android phones to scan posters to pick up Google Offers from Macy's and other providers.
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NEW YORK—Google May 26 introduced Google Wallet, the search engine's long-rumored mobile payment service. The free service, unveiled at an event at Google's sprawling New York office, includes a free Google application that users can download to tap their phone and pay for goods from participating merchants, such as RadioShack. Citigroup and MasterCard are providing the mobile purchase services, which will be enabled by special point of sale registers equipped with near-field communications (NFC). NFC is the wireless technology that enables devices equipped with special chips and sensors to communicate when brought in close proximity to one another. Though little used in the U.S., Google officials said they expect NFC to roll out on 50 million smartphones in the next few years. Sprint is partnering with Google to offer its Samsung Nexus S 4G smartphone for this experimental service. The Nexus S 4G, which includes an NFC controller chip from NXP, runs Google's Android 2.3 "Gingerbread" operating system, which includes native NFC support. Google Wallet is coming to New York and San Francisco in a trial run this summer, with expansion to additional cities and smartphones in the future. Coca-Cola vending machines and even taxis are PayPass-enabled, including major outlets such as CVS, Jack in the Box, Sports Authority and Sunoco. Take this picture tour of the service in this eWEEK slide show, which we composed live from the event.