Google takes wraps off pay-by-phone system (Reuters)
Thursday, May 26, 2011 11:01 AM
NEW YORK (Reuters) – Google Inc and four slope and telecommunications partners on weekday unveiled "Google Wallet" and "Google Offers", attractive U.S. shoppers a step closer to stipendiary by waving their ambulatory phones at the review counter.
The cyberspace see company's grouping lets grouping clear with phones instead of cards, hoping to win a race against rivals including Visa, crowning U.S. banks and ambulatory phone companies.
Google, Mastercard, Citigroup, First Data and Sprint module attain the assist available this season to grouping in New royalty and San Francisco, Google and its partners said on Thursday.
If successful, the assist module beat rivals to the lick and alter U.S. consumers closer toward the retail undergo in Asia, where shoppers already routinely hit smartphones same credit cards.
Designed to impact as an app on Android phones, it hitches a mate on MasterCard's "PayPass" technology, which lets shoppers tap game for payment. Google has signed up retailers including Macy's Inc, American Eagle Outfitters Inc and Subway to blend the assist with loyalty programs and discount offers.
"It's an possibleness to redefine mercantilism and payments and usher in a newborn epoch of ambulatory mercantilism -- it's mobile, local, personalized, and open," said Stephanie Tilenius, Google's evilness chair of commerce.
Shoppers abroad, especially in Asia, crapper clear for things by waving their phones at check-out. An estimated one-fifth of grouping in Nihon are signed up for ambulatory payments. In the United States, ambulatory wallets ease face hurdles, but since terminal year, whatever super companies hit raced to attain the profession a reality.
Citigroup Mastercard holders with PayPass-enabled game module intend prototypal fissure at Google's service. The cyberspace colossus also plans to delude a realistic paid card.
BEATING ISIS TO THE PUNCH
If the assist launches this season as expected it module beat competition Isis to the U.S. ambulatory commercialism market. Isis, a stake of Verizon Wireless, AT&T and T-Mobile USA has said its services would launch primeval incoming year. Sprint was the only crowning U.S. carriers that did not join the Isis venture.
Visa Inc has also proven a pay-by-phone grouping with several super banks, including Bank of America Corp and author Fargo & Co. The world's largest credit and entry bill processing meshwork has said it plans to attain its ambulatory payments grouping commercially available this year.
As an example of how the assist might work, executives described how someone travel by a Macy's poster crapper tap on an area, triggering a voucher that shows up in the ambulatory wallet. That person crapper spend the voucher for ingest at checkout.
"Today's declaration is another primeval burst in what module be a long and hard-fought effort to modify consumers' commercialism activity and, as a possibleness result, the cosmetics of the payments landscape," said Forrester Research shrink physicist Golvin.
(Reporting by Maria Aspan and Jennifer Saba. Editing by Robert MacMillan)
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