Two anonymous sources told Bloomberg’s Businessweek that Google is considering creating a service that would allow consumers to pay with their mobile phones by just waiving it in front of the cash register. Although the plans have not been announced, it is predicted that they may go public as early as this year.
Google is not the only company planning to infiltrate the NFC market, Verizon, AT&T and T-Mobile have already begun plans to offer NFC-based services. These companies are all competing to be the leader in the NFC market which is expected to account for nearly a third of the $1.13 trillion dollar global payment transaction industry in 2014.
What is NFC?
NFC stands for near field communication and is a relatively new technological platform that will enable consumers to exchange data between twodevices. So far, the main focus of this type of technology is aimed at mobile phones. Users with NFC-enabled mobile phones will be able to use the program for interactive advertising, as a credit card and information exchange.
Future of Mobile Payments
Google Chief Executive Eric Schmidt predicted that this would be the new way of conducting transactions at a November technology conference. “You’ll be able to walk in a store and do commerce.” Says Schmidt, “You’d bump for everything and eventually replace credit cards.” A phone with a NFC chip will be able to hold credit card information, checking and savings account information, as well as gift cards and coupons.
When Google purchased Zetawire, a Canadian company focused on mobile commerce, it was clear that they were planning on immersing themselves in the mobile payment trend. NFC is already featured on certain phones such as the Nexus S, an android phone owned by Google. The Nexus S can currently read NFC tags on certain advertisements i.e movie posters, but the phone has yet to have the full features listed above. Google has focused its energy towards spreading the NFC tags to merchants across the nation in order to ramp up its reach.
Google is a force to be reckoned with and their latest interest in the mobile payment industry is not to be taken lightly. There has also been some light buzz about Apple looking to utilize mobile payment. Whether or not this form of payment will really replace credit cards is still debated, but what is undebatable is that it is about to be a huge trend.
Do you think NFC technology will replace the credit card? Let us know in the comments below: