Google Reveals its Mobile Payment Platform

Google Inc. is going to reveal details about their latest mobile payment platform.

A technology called Near field communication(NFC) will be embedded in smartphones powered by Google’s Android software to make it an electronic wallet. By waving the smartphones in front of a small reader at the merchants’ store, users will be able to purchase, store purchases, redeem coupons, and get loyalty points.

 

The launch will start from New York. Macy’s Inc, American Eagle Outfitter Inc and the Subway fast-food chain are among the participating retailers. These retailers will need to install a reader for at the terminal of point of sale to read the mobile device.

According to The Wall Street Journal, Google was working with financial institutions such as Citigroup Inc. and Mastercard Inc . Retailers and hardware makers such as VeriFone Systems  and Cerdit card maker, ViVotech Inc might also partner with Google.

The payment platform by google lets software developers to take advantage of the technology, that is software developers are then able to create mobile application based on the technology.

Reason for creating the payment platform is to boost Google’s digital advertising business. With the data extracted from the mobile payment system, Google will be able to offer retailers more data about their customers and  help the retailers to target advertisements to mobile-device users near their stores.

Besides benefiting retailers and merchants, the platform will also benefit users such that users could manage credit-card accounts and track their spending, loyalty points and other things through applications on their smartphones.

To embed the the technology into phones powered by Google’s Android software, Google partnered with Samsung Electronics Co. . Besides, Google will also team up with wireless carrier Sprint Nextel Corp. to offer the technology into its network this year.

However, there are also tough competition from players such as Square Inc, which also does a similar platform and will be giving business data on consumer-purchase behavior to retailers.

 

 

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