Mobile Payment is Getting Very Near
By Azam on May 24, 2011
Google and Sprint set to announce today the launch of mobile payment using Near Field Technology. The market for mobile payment is heating up with launch of NFC technology and commercial availability. The mobile payment service requires a NFC semi chip that is currently being produced by NXP.
Sprint is launching service on the Nexsus S phone based on Google Android design and operating system. Google is running the payment system based on Verifone and ViVOtech hardware and software.
Google chief executive Eric Schmidt said shortly before the Nexus S hit the market in December that he expects the tap-and-pay mobile technology to “eventually replace credit cards.”
Google mobile wallet system will utilize a Citibank-issued MasterCard credit card number and a virtual Google MasterCard prepaid card. Consumers will be able to make payments at any of the 124,000 merchants that have MasterCard’s PayPass terminals, which accept contactless payments.
Google initially plans to launch service in five cities: New York, San Francisco, Los Angeles, Chicago and Washington, D. C.
The service will allow users with NFC equipped devices running on android platform to pay and redeem coupons with mobile phone.
The Android platform is also being made by other device manufactures including: HTC, Motorola Mobility, and Samsung.
Google is rolling out payment service based on NFC technology that work with registers by waving device near to make payment, Google plans to make revenues through mobile payment, advertising, and offering discounts.
The market for mobile advertising is expected to rise to $6.53 B in 2014, up from $370M last year, according to Borrell Associates.
Competition
Apple is planning a similar NFC payment system offering, according to Richard Doherty of Envisoneering Group.
ISIS is another competing NFC mobile payment system by joint effort of ATT, Verizon, and T-Mobile. ISIS is expected to launch in 2012.
Categories : Media & Ads, Tech, WirelessTags : Android, apple, ATT, CitiBank, Google, MasterCard, Mobile Advertising, Mobile Payment, Nexsus S, NFC, NXP, Sprint, Verifone, VivoTech