Google wants to own your wallet

Already the dominant force in online search and slowly gaining pace in the smartphone OS race, IT giant Google now wants to take consumers' purses and digitize it with the recent launch of its new e-commerce service called Google Wallet. Announced in late May, Google Wallet is a mobile-based payment system which uses near-field communication (NFC), a technology where two objects can exchange data when they are brought within a few inches of each other. NFC is a technology widely used in transportation systems in other countries, such as the Octopus Card in Hong Kong and the Oyster Card in London, where users merely have to tap their wallets with the NFC cards inside against the readers to enter turnstiles or process transactions. During the initial phase of the launch, only Spring Nexus S 4G phone users in the US who use a Citi Mastercard credit card will be able to test out the service, but Google said they will be bringing in more credit card and merchant partners in the future. "We’ve been testing it extensively, and today we’re releasing the first version of the app to Sprint. That means we’re beginning to roll out Google Wallet to all Sprint Nexus S 4G phones through an over-the-air update—just look for the 'Wallet' app," the company said in a blog post. To start using the service, users of NFC-enabled Android phones would just have to go to the brick-and-mortar stores of the service's launch partners—which include American Eagle Outfitters, Jamba Juice and Toys R Us—and tap their phones against the reader during checkout. The phone, however, would have to be powered up and the display lit up for the NFC functionality of the phone to work, meaning users wouldn't be able to use the service once their battery has died down. "As a thanks to early adopters, we're adding a $10 free bonus to the Google Prepaid Card if you set it up in Google Wallet before the end of the year," it added. The Google prepaid card acts as a conduit for users of other credit card brands which are not yet supported on day one of the service. The company, however, clarified that they intend to extend support to more merchants, payment partners and credit card companies in the future. In May, Google likewise signified their plans to expand the service outside the US. "Google reps did say that they eventually plan to expand Wallet services worldwide, starting with Europe and then likely Asia," reports ZDNet, adding however that no timeframe has been laid down by the search engine giant. — RSJ, GMA News