Google wallet heralds a future the carriers don’t want

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We use our phones every day. We take them with us almost everywhere we go, even to the toilet. It goes along in every get-up, every party, every trip and every meeting. We take it with us to go shopping as well. We take it along sometimes even more often than our own wallets. So why not make it your wallet, too?

Google Wallet is a concept that allows users to register and keep their card details within the app so they can use it later on to make payments. This is done by using the NFC technology that Google constantly promotes to the world. Google tries to make it a point that every new Android device should have NFC capability so that it can make the technology more widespread, hoping that Google Wallet will be as widespread as their phones.

Recent updates revamped the Google Wallet to make it even more secure. The card details are no longer stored within a “secure” location in the phone. It is now stored within a “secure” location in Google’s servers. Hopefully, they really made that secure, as it would be a nightmare for Google if someone were to hack that server. It would place Google Wallet in a road to its downfall.

The switch to a secure server has allowed Google to add more card types into the NFC payment scheme. Banks are encouraged to add their card portfolio with Google Wallet by offering the service as free. The Google Wallet app only stores an encryption key that will allow the device to connect to Google’s secure servers.

Many users are concerned that aside from NFC, an internet connection is required. Google hints that is not the case. Sure you will need the net to switch cards to use, but once a card is chosen, the card can be used anytime with NFC. The transaction is stored within the device, and then later on uploaded to Google servers.

Along with the function, updates are new features that allow you to lock your wallet remotely, and even wipe information from the device. Sure, you are out a couple hundred dollars, but at least you won’t be out with more if you just lose your phone. As Google points out, you can’t wipe a regular wallet full of cards unlike Google Wallet.

There are thousands of Paypass terminals now available in the US. The only problem is that not all NFC enabled phones are able to use Google Wallet. No, it is not due to the phone’s capabilities, but rather because the carriers block the app itself. Carriers don’t earn a thing from the transactions, and they want to have a payment system that uses their own ISIS instead, so they can get a cut out of the purse. This is an anti-competitive approach, preventing the option of choosing which service to use. Hopefully, if more banks are using the Google Wallet system, the carriers may be forced to release their hold. Are you excited about the new Google Wallet?

Image sources: droid-life.com, googleblog.blogspot.com, news.cnet.com