We just got done watching the live stream of Google announcing Google Wallet and Google Offers in conjunction with Sprint, FirstData, Citi and Mastercard. It’s everything we imagined it to be and more. Using an NFC phone, you’ll soon be able to tap POS systems to quickly and securely make payments without the need to carry around any more plastic other than what may have been used to construct your phone.
It’s so much more than just payments, though. Google also announced Google Offers, a companion service which enables retailers to deliver offers to their customers handsets, and which enables customers to easily redeem them using that same handset.
All of the partners mentioned above convened in New York to show off the new technology that Google is set to launch this Summer. They detailed everything – from how the NFC chip securely stores and handles the data to how you’ll actually use the applications on your Android phones.
How it’ll work
In the demo, setting up Google Wallet looked very simple. From the start, you’re asked to enter a pin number that will be used to access Google Wallet every time you open the application. After you’re in, you’re asked to add a credit card. You do just that, entering your credit card information into a series of text fields just as you would any website online or any mobile payments form.
Upon entering your details, three things happen. First, your bank verifies that you are who you say you are as they securely receive your request and details. Once they do, they securely send that information to FirstData, who is a “trusted services manager”. They see that the bank has given them the green light as far as authentication goes.
After that, FirstData sends a token back to your device saying it’s OK for you to use your wallet on your phone. It sounds like a long process, but it happens in seconds. After that, you can start buying stuff but you can only use $100 until you activate/verify your account to use that card. (Usually done through email.)
If you don’t want to use multiple credit cards on the same phone, or if you don’t have a Citi Mastercard, you can add funds to a “GCard” that is usable just like a regular card at any supported point of sale.
Google, in conjunction with FastData, has taken security very seriously in the venture and have gone above and beyond industry standards to ensure the utmost safety for consumers and their partners with innovative hardware and software-based solutions. Do not try to open your Nexus Sor any phone with NXP’s secure chip inside – your NFC chip will purposely break. And that part of the NFC chip won’t even be powered on until you enter the NFC wallet application and submit your pin number.
