Yesterday I wrote about NFC (Near Field Communication) chips used by Google Wallet in Android phones by Sprint, and how they work with PayPass by MasterCard. Today I saw a PayPass card reader in the wild at a BJs store in New Hampshire.
Wow! I thought it would take years to get these special card readers deployed. Then I saw one at a Subway sandwich shop, and another at a RiteAid drug store in New Hampshire. I just didn't look for these things until the Google Wallet announcement. Suddenly I am seeing them everywhere.
Well, it turns out that MasterCard has been deploying these PayPass readers for a while now. They use them to read their special "Tap & Go" MasterCards with the NFC chip built in.
The MasterCard web site has all the details. The site says "A tiny microchip and radio antenna embedded in yourPayPass-enabled card, key fob, device or phone transmit your payment details wirelessly to a high-speed PayPassreader at checkout. The reader then verifies your transaction with your bank through MasterCard's reliable network and indicates approval almost instantly."
Consumer behavior already changing - Today I am more convinced that NFC digital payment adoption will be much faster. MasterCard has already been working on this for a long time. They have the readers in thousands of stores across the USA. They also have lots of Tap & Go" cards already in the hands of consumers. So, some of the behavior change is already happening.
World class partners key to success -
Sprint is the first carrier to introduce an Android phone with the NFC chip. Sprint will bring Google Wallet to end users by deploying the service on the Nexus S™ 4G and many of its upcoming Android phones.
MasterCard contributes their contactless PayPass technology which supports NFC enabled phones and Tap & Go credit cards. It provides consumers with a fast and convenient alternative to cash for their everyday purchases.
Citi is one of the worlds largest credit card issuers. Citi is the lead bank at the launch of the Google Wallet.
First Data is powering key parts of Google Wallet including a Trusted Service Manager, a technology to connect payment cards into the virtual wallet. First Data also enables small businesses to accept Google Wallet through contactless point of sale terminals.
These world class partners ensure that the technology will work reliably and securely. The hardware required to read the new NFC chip phones will be there, and in many cases already is in place.
Consumer value - Google Wallet will provide the service to tie the phone to the credit card or prepaid card to make this all work. So, the technology will work from day one. Convenience is good, bust saving money drives massive adoption. Google Offers is now in beta in Portland, Oregon. It will provide 50% off offers at lots of places you will love.
There will be lots of competition to provide the best payment options for consumers. The winners will be those that provide convenient payment technology combined with money saving offers and services.
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