It’s time to make headway for near-field communication (NFC) as a way to make purchases using a smartphone (“mobile payments”). Not surprisingly, Google is in the trenches with this developing technology.
I’ve been in the security analysis field for years, and with online technology evolving so rapidly, there is always something new to report. Google’s NFC use for smartphones is no exception to this rule.
Previously, all mobile payment information was stored on SIM cards within smartphones that were controlled by wireless carriers. And what did this mean? This meant fees from mobile service providers. Mobile payment options have not caught on much with consumers, partly because consumers are concerned about security. And I certainly can’t blame them.
However, Google’s latest technology eliminates the requirement to store card and additional account credentials in your phone on a SIM card (a boost to Google Wallet, which hasn’t been doing too well in the marketplace). This allows retailers to adopt NFC payment programs at a smaller cost.
However, Google needs to show the value of NFC so that retail merchants will want to adopt it.
Google Wallet has floundered in part due to the tech giant’s refusal to pay the very high fees to cellular providers to load payment credentials.
But now that Google’s new system cuts costs to merchants’ adoption of mobile payment technology, as well as makes the payments easier on consumers, Google Wallet may soon begin thriving.
This begs the questions:
- 1) What will the results be of all of this?
- 2) Will the simplified near-field communication induce enough new interest to light up on the radar?
The repercussions will be the result of an evolving process, and whatever repercussions there will be, will simply be the natural evolutionary process of mobile payment systems.
The bottom line, however, cannot be disputed: People will acquire additional convenience plus reliability with this updated method of mobile payments, and retailers will have a more affordable system that they can easily implement. The evolving process of Google using NFC for mobiles continues to evolve.