Google Wallet: Your Phone is about to Become Your Wallet

Rumors are buzzing about the Google Wallet launching tomorrow, September 19, after a long and anticipated wait. In May this year, Google introduced the next big shift in the way we pay: Goodbye paper and plastic, hello cell phone. According to Tech Crunch, documentation on the launch tomorrow was sent to partners and as of tomorrow, Google is officially entering the mobile payment system

What Is Google Wallet?

Google wallet is an Android app that makes your phone your wallet. It stores virtual versions of credit cards that are accessible by taping. It will eventually store in addition to cards, gift cards, coupons, receipts, boarding passes and tickets. It will also redeem any membership or loyalty points while you make a purchase. As of now, the Google wallet only supports Citi Master Card or a prepaid card and will be compatible with Nexus S 4G from Sprint.

The process itself is super easy: simply tap and pay and although it may take a few more years until you can leave your wallet at home, the right phone will let you get an early trial of this new payment method.

Google Wallet’s first commercial is starring George Costanza and his overstuffed wallet:

Cons of Google Wallet

One complaint from potential users so far is that it only works if you have both Sprint and a Citi Master Card. Google is launching its next Android phone, Nexus Prime, next month which will make the app available for Verizon users as well. As for credit card, more options might become available on a later stage.

Some fear that this will serve as an opportunity for theft and fraud, but the app is designed with the option to be locked with a personal PIN so even if the phone is stolen, it can’t be used to purchase things. Another concern is that consumers will become an even easier target for marketers who’ll be able to use this information and add it to their personal consumer profiles but there is really not much difference since consumers are already exposed via their online profile and purchasing and browsing activity.

The Competition

EBay’s PayPal is also joining the game and is about to launch mobile payments, barcode scanning, store inventory and location based deals. The company claims that their mission is to make the payment process as faster and smoother as possible for their shoppers but the truth is that by easing the process, many people go from being surfers to shoppers. Almost 35% made the shift and became active shoppers. PayPal is scheduled to release this service next spring or summer.

Big In Japan

Shopping and paying with your phone is not a new thing; in Japan, phone have been used as debit and credit cards for some time now and can be swiped through most checkout lines to buy almost anything. Many companies in Japan offer catalogs for cell phones alone and bar codes for scanning and buying can be found on newspapers, magazines and even in the subway, on electronic screens that stream commercials. Most Japanese phones come equipped with these QR code readers that can quickly scan and process payments.

Japanese developers and marketers took it a few steps forward: these codes direct consumers to a brand’s website, allowing them to download ringtones, videos and games. Fast food brands are printing codes on sandwich wrappers and a customer can scan the codes and instantly get the nutrition or ingredient information of the product. Doctor’s offices and beauty salons use these codes to let people make appointments over their mobile phones. Some people and companies even print codes on their business cards so people can scan the company’s information directly into their cell phones. Lastly, these can be seen on TV after a commercial is played, on the bottom of the screen, so if a customer liked what he or she saw, they can immediately scan the code and purchase the item on the spot.