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Google Teams Up With 3 Wireless Carriers To Combat Apple Pay
HughPickens.com writes AP reports that in an effort to undercut Apple's hit service Apple Pay, Google is teaming up with three wireless carriers by building its payment service into Android smartphones sold by AT&T Inc., Verizon Wireless and T-Mobile USA. Besides trying to make it more convenient to use Wallet, Google also is hoping to improve the nearly 4-year-old service. Toward that end, Google is buying some mobile payment technology and patents from Softcard, a 5-year-old venture owned by the wireless carriers. Financial terms weren't disclosed but Apple Pay's popularity probably helped forge the unlikely alliance between Google and the wireless carriers. Google traditionally has had a prickly relationship with the carriers, largely because it doesn't believe enough has been done to upgrade wireless networks and make them cheaper so more people can spend more time online.
The biggest challenge however is one that both Apple and Google face: Only a small fraction of the 10 million or so retail outlets in the U.S.–220,000 at last count–have checkout readers that can accept payments from either system. Both wallets use a radio technology called Near Field Communication to send payment, and it's expected to take years for most stores to be upgraded. What's at play? The big tech companies and carriers seem convinced that our phones will eventually replace our wallets. For carriers, that could make mobile wallet technology table stakes over the next few years as they compete for consumers.
The biggest challenge however is one that both Apple and Google face: Only a small fraction of the 10 million or so retail outlets in the U.S.–220,000 at last count–have checkout readers that can accept payments from either system. Both wallets use a radio technology called Near Field Communication to send payment, and it's expected to take years for most stores to be upgraded. What's at play? The big tech companies and carriers seem convinced that our phones will eventually replace our wallets. For carriers, that could make mobile wallet technology table stakes over the next few years as they compete for consumers.
I get so sick and tired of seeing people use some sort of a card or device to pay for small purchases. It's never as quick as cash is.
When I buy my morning coffee, the payment takes less than 10 seconds, even with the cashier ringing it in and making change.
When other people pay with credit card or debit card or their phones, it ends up taking at least 30 seconds, if not a lot longer. If somebody can't find their card right away, or if they forget their pin, or if the terminal can't read the card, or if the transaction fails, or if one of any number of other things goes wrong, the rest of us just have to fucking stand there and wait. If the person had just paid with cash, we'd have all been on our way already!
Use credit cards for large purchases, or when buying online. But for crying out loud, just use cash for everyday purchases! Save yourself some time. Save the rest of us some time, too!
Not sure about the Google and Android solutions, but you don't need a network or cell connection to use ApplePay
Nor with Google Wallet.
Also, I dunno about you, but I always have my phone in my pocket, just has handy as my wallet, but with my wallet, I need to remove a card, swipe it, and usually either sign or enter a code.
My phone is actually handier than my wallet, because I use my wallet less and keep it in a less accessible pocket. Actually, most of the time while I'm in a checkout line my phone isn't in my pocket, it's in my hand.
(Disclaimer: I work for Google and bits of my code support Google Wallet. However, I was a fan of NFC payment before joining Google, and whether it's Google, Apple or someone else I'm really glad to see it finally taking off.)
Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
I was visiting the USA (California is nice this time of year) last week and I had to sign little pieces of paper with my name to buy things with my credit card. Apparently none of the stores and restaurants have chip and pin terminals. You can't prevent even the most basic fraud if any guy with a card reader can make a copy of your magstripe and clone your card. What's worse, in the restaurant they actually walked off with my card, instead of bringing a wireless terminal to my table for me to enter my PIN. You good people are about 5 years behind the times. WTF happened?
None of them can see the clouds; The polished wings don't care.
I have no idea why I'd want to use my phone instead of a card.
There is also some potential increase of security:
Unlike (nearly) every card(*), the phone is a device that has its own display and input interface.
Meaning that you don't need to trust the payment terminal(**).
- No risk of skimmer trying to read you PIN: you're typing it into your own phone, not on the terminal which could have been hacked/modded.
- You can trust the amount displayed (again, you are reading your own phone's screen, so even if the terminal is hacked to display a lower sum and actually bill a higher sum, you'll notive the discrepancies).
Also, the phone has connectivity, which allows out-of-band confirmation for the transaction (***).
Thus, the device is protected against fraud that could menace a classical card.
- hacked terminals showing bogus transaction amounts, or trying to record your PIN.
- hackers trying to relay a transaction (small amount are "tap/swap only": no signature neither PIN asked. It's possible to use a powerful antena pointed at a wireless credit card to remotely use it and relay communication to a terminal).
Saddly, the phones have their own problems:
- they eat batteries like candy (even wireless credit card transaction are remotely powered by the terminal. Whereas a dead phone is dead and can't be used for paying).
- again, they are conencted. Which means that they could be compromised themselves. (Specially since people tend to install tons of crap).
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(*): I've seen banks issuing cards used for e-banking that have a build-in screen and keypad. Similar devices are in theory possible on a credit card.
(**): lots of e-banking card reader do exactly that: you can check on the screen what you are asked to sign.
(***): That's a security feature that's also offered by combining classical credit cards and separate connected device. I can be asked to confirm by SMS / by voice call when the bank detects unusual traffic on my credit card.
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