Last week I covered Square’s ‘Register’ app and retail system. Today I have some information about Google’s apparent competing Digital Wallet system. Both of these systems will be advancing into the retail space this summer, and it is quite interesting to look over some of the salient differences in how they accomplish what is effectively the same thing (to replace your wallet, and to make small retail purchase a far smoother and faster experience or you, the end user…).
The Square system is essentially a replacement for the cash register, and through this, a potential replacement for much of your wallet (virtual credit cards in your virtual wallet…once you have set this up with each retailer…). The advantages of this system is that there is little to chance as far as physical infrastructure (any smartphone, equivalent will work, and the point of sale card reads (for various smartphones and iPads) are free (with a small premium on each transaction…).
Google’s system is closer to a wallet replacement, and is based upon having (on most likely an Android phone) a Near Field Communication antenna (NFC) to communicate with the retailer’s equipment. Since there is only one Android phone with this (as of now, as far as I know) Google has some jury rig method with which you can approximate much of this without having to resort to this technology…yet.
On paper, both systems look interesting, but upon some deeper scrutiny you can see the potential for some titanic technical battles in the near future. For instance, will Apple add a NFC to their iPhone’s, iPod Touch’s, or iPads…? What are the data mining potentials in having access to these seemingly inconsequential retail transactions? There are some big power plays coming on the horizon here…
Google’s NFC-Powered Digital Wallet: Room for Your Shopping Lists, Credit Cards … And Complete Trust
http://www.fastcompany.com/1755490/google-shopping-wireless-wallet-nfc-payment-nexus-smartphones
Square’s gone after the clunky old cash register. Now Google’s trying to reinvent how we pay for even more things. It’s just revealed Wallet, the first big-name, large scale rollout of NFC wireless wave-and-pay next generation credit cards.
We’d heard several rumors, each adding a little detail, but now we know it all: Google’s just revealed its digital Wallet solution, based on near field wireless tech in its Android-powered smartphones. It’s not just about reinventing the good ol’ plastic magnetic strip credit card, it’s actually about changing nearly everything about shopping "tomorrow’s next best shopping experience." It’s a partnership with Mastercard’s PayPass system, with Sprint and Citibank along for the ride, and it should be a workable solution all around the world for users, wherever PayPass is accepted.
PayPal Sues Google & Former Execs over Google Wallet
http://mashable.com/2011/05/27/paypal-sues-google-wallet
Well, that didn’t take long: shortly after Google’s announcement of its new mobile payment service, Google Wallet, PayPal sued the company as well as two of its former executives over trade secrets.
According to PayPal’s lawsuit, which can be read in full here, former PayPal executive (now working at Google) Osama Bedier stole PayPal’s trade secrets and shared it with Google and other companies. Another present Googler and former PayPal exec, Stephanie Tilenius, violated her contract when she recruited Bedier, PayPal said.
All My Purchases Sorts Wad of E-ceipts From Square Users, Apple Stores, More
http://www.fastcompany.com/1755386/how-all-my-purchases-is-going-to-help-you-manage-your-digital-shoebox
A company that started out looking to join the social commerce revolution found an opportunity in simply being useful to people trying to manage email receipts.
With the rise of Square’s paperless transactions, those instant digital receipts from Apple Store purchases and others, inboxes are the new wallets–stuffed with too many receipts to even begin to organize.
That’s why Project Slice is today launching a new application that will automatically scan your emails and collect all your purchase information in a single place. You’ll be able to see a history of what you bought and when. And for online purchases, you’ll be able to see when your items shipped and what their tracking numbers are.
Special Stickers Will Bring Google Wallet to Android Phones That Lack NFC
http://techcrunch.com/2011/05/26/special-stickers-will-bring-google-wallet-to-android-phones-that-lack-nfc
We’re here at Google’s NFC payments announcement, where the search giant has announced a new, important product called Google Wallet (see our comprehensive post on the announcement here). Google Wallet will be launching this summer — it’s currently in field testing — allowing users to tap their phones against NFC-enabled terminals to pay for goods, redeem offers, and use their loyalty cards in a single tap.
Of course, the vast majority of phones out there do not support NFC (the Nexus S is currently the only Android phone on the market that has the technology). Google and its partners reiterated that NFC will be surging in popularity over the next couple of years, and for the time being this is really a first step. But Google also has a plan to enable older devices to use a more limited version of the app: stickers that you can put on the back of your phone.
