Google has announced that it will team up with MasterCard, Inc. and Citigroup, Inc. to equip Android mobile devices with "NFC" technology so that owners will be able to purchase items with a wave of their phones. NFC technology, or "near field communication technology", involves a mobile-payment Android application and credit-card/debit-card readers that are "contactless devices" meaning that a wave or tap or the cell phone would allow the readers to pick up account information. VeriFone Systems, also included in Google's venture, makes contactless readers and would supply the readers for cash registers. According to the WSJ article "Google Sets Role in Mobile Payment" by Amir Efrati and Robin Sidel, the perception that NFC technology is less secure because it is contactless is false. The technology is much more sophisticated than the standard magnetic stripe and therefore harder to steal. Also, the credit card companies would cover the cost of unauthorized transactions just like they do with conventional cards.
Google plans to sell advertising to local businesses by offering them more information on their customers. With this information, businesses can target advertisements and discount offers to smart phone owners in their area. For additional information go to:
http://online.wsj.com/article/SB10001424052748703576204576226722412152678.html?mod=WSJ_Tech_LEFTTopNews
The Samsung Nexus S Android will be mobile payment capable.
Interesting that after Facebook, there is some information to sell. I'm of the opinion that one day the pendulum is going to swing back the other way against all this personal information sharing and when it does I'm a little concerned how ethical GOOGLE will handle information during a period of revenue shrinkage.
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