Earlier this year we put up a question: Virtual Smartphone Soon To Become A Reality?. And we are answered today because today Google, the world’s largest Internet search company, finally launches its mobile payment system. The service will allow users to pay for their purchases with a single swipe of their smartphones through a specialized reader at checkout counters. Initially the service will be launched in New York, San Francisco, Los Angeles, Chicago and Washington, D.C.
The Mobile payment system is based on the NFC (Near Field Communication) technology that allows transferring information wirelessly from one device to another. At present, the NFC chips are available in Google Nexus S and Nokia C7. However analysts do predict that as many as 50 million NFC enabled smartphones will enter the market by the end of 2011.
Mobile wallet services have garnered more demand in the recent times. Everyone ranging from Mobile operating companies, Banks to Card processing companies and Technology companies has already started their efforts to gain foothold in this still-small but high-potential market. Microsoft is planning to use NFC technology in its Windows Phone 7. Samsung and Visa are already in talks to launch something similar and according to some reports, Apple too has got something hidden in its sleeves. Looking at the potential of the market, it makes perfect sense for a company like Google to make its foray into this field. The purchasing habit of the individuals is like a goldmine of information for the marketing companies. These companies can utilize the information gathered by Google to market their products and services and Google, on the other hand can use the Mobile Wallet services to sell its targeted ads.
Looking at the benefits of all the parties involved, we don’t think that it will be too long before an Indian Mobile Operator partners with a Bank and a Technology company to launch such services for the Indian consumers. With the growth of Smartphone market and rising popularity of Mobile payment services, the stage is all set for this technological endeavor.
What do you think about this new technology? Do let us know in the comments section.