Wednesday, 1 June 2011

Google Wallet is not just about cell payments

When Google Inc. declared last week its new mobile payments service, Google Wallet, the buzz was all about enabling people to buy merchandise utilizing their smartphones. But the payments will not be what truly interest Google-it’s the buyer information behind the payments and affiliated special deals and what that information will reveal about client and merchant conduct which will reap rewards for that research motor giant, Forrester Analysis says.

Google’s product or service strategists are focusing not to the payment alone, Forrester says within a study note, but around the linked coupons and gives you consumers are anticipated to accept from taking part merchants. Integral to Google’s mobile commerce work will be the inclusion of Google Offers, a offer service that permits merchants to supply coupon codes redeemable via the Google Wallet.

Tying the payment mechanism to a merchant give could develop useful information for Google, Forrester says. Immediately after examining the information, Google can create behavioral profiles based to the details. “Incorporating real-world obtaining behavior into these profiles will vastly improve the benefit of these customer profiles and increase the charges Google can charge its advertisers,” Forrester says.

Google Wallet relies on Close to Field Communication, a wireless engineering that allows units to exchange information-including payment card data-over a short distance. It can help a purchaser to pay for goods within a retail store by waving a smartphone with the NFC chip near an NFC-enabled terminal. NFC utilizes a merchant’s point-of-sale system to initiate and authorize transactions. But NFC transactions necessitate merchants to upgrade point-of-sale procedure hardware-a huge hurdle-and handset makers to embed NFC chips in cell phones-another hurdle, though one that is definitely getting addressed as some handset suppliers have started like chips within their gadgets. At first accessible on Google’s Nexus S phones to the Sprint network, Google Wallet will probably be totally free for shoppers and merchants.

Even though Google Wallet could advance cellular commerce, it stays within just the bounds with the traditional payment course of action. Google is relying from the current payment procedure construction, which incorporates card-issuing financial institutions, payment processors and payment networks, for Google Wallet transactions, Forrester says. “With this solution, Google is safeguarding these partners in opposition to cellular payment disruption,” Forrester says.

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