BY MEGAN NOE
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A new war is underway in the tech world-- and it could end with the disappearance of your credit card. Google is expected to enter the mobile payment race Thursday with a mobile wallet that would allow payment from Sprint Nexus S cell phones. KABC explains.
"Internet giant Google is reportedly going to launch a mobile payment platform that lets people use their phones to pay just like they would a credit card. Data would be transmitted with taps, waves or swipes at store checkouts. Google's chief said he expects the tap-and-pay mobile technology to eventually replace credit cards."
The announcement would be a blow to Apple, which a "Cult of Mac" blogger says isn't likely to have the near-field-communication, or NFC, capabilities until 2012. The Atlantic Wire, though, sees another possibility.
"It's entirely possible, however, that Apple is being characteristically Machiavellian in its mobile payment strategy. NFC capabilities top the list of rumors swirling about the release date and feature set on the iPhone 5, and the June deadline for the annual iPhone update is just days away."
Google's biggest competition may be Twitter co-founder Jack Dorsey and his mobile payment start-up called Square, which is already processing $3 million in mobile payments a day. On CNBC's Power Lunch Monday, Dorsey discussed his new app and the competition.
"We think that a lot of these people are focusing on parts of the transaction, and they're not really focused on the whole aspect of paying for things and the whole transaction. Square's the only company in the world that ties the register, ties the point of sale, to something in the payer's wallet and to something in the payer's pocket and makes them one system."
But it's Google's NFC wallet that some in the tech world think could make mobile payment mainstream. A ZDNet blogger explains.
"Smartphones have hit the mainstream, the comfort levels with apps and mobile broadband are gaining traction and the trust levels around mobile security are improving."
And as the Wall Street Journal reports, advertising potential is huge.
"The planned payment system would allow Google to offer retailers more data about their customers and help the retailers target ads and discount offers to mobile-device users near their stores..."
Bloomberg says Google plans to roll out the service in five major cities-- New York, San Francisco, Los Angeles, Chicago and Washington, D.C.
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Introducing New Online Payment System: Squareby NewsyTech845 views
PAY THAT WAY.
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