Google Wallet

Key Highlights

• What is Google Wallet

• How it Works

• Google Wallet & Security

• Business Model used by Google

• Merchants in collaboration with Google Wallet

• Future trend of Mobile Payment via NFC

What is Google Wallet

• It is a payment system developed by Google that allows the users to store payment, loyalty & credit cards. It also offers redemption of sale promotion coupons on the phone and online. In short one can say it is a virtual wallet.

• For fast, convenient and secure payments Google Wallet uses near field communication (NFC), wherein the user simply taps the phone on any PayPass-enabled terminal at checkout .

How it Works

Use it in-Store Use it Online

Look for PayPass sign at the checkoutcounter, tap the phone on the reader. Thephone sends payment & at somemerchants offers loyalty information andmuch more.

Look for either of the above shown buttonsat the checkout and click to pay via signingin into your account

Google Wallet supports two kinds of cards: 1)Citi (R) MasterCard (R) credit cards

2) Google Prepaid Card

Google Wallet & SecurityA stolen debit card can be used without its PIN but Google Wallet doesn't work without a PIN

Additional security features: • Google Wallet stores encrypted user information

on a computer chip called the Secure Element.• The Android device itself can be locked with

a personal identification number (PIN).• The Google Wallet app requires an additional PIN

to activate the NFC chip antenna. • The Google Wallet device must touch or be in

close proximity to a MasterCard PayPass reader.• Once the transaction is completed, the antenna is

turned off. Additional transactions require the PIN to be entered again.

No charges for the users and merchants whoaccess Google wallet, instead Google is planningto make money by offering sponsored ads totheir users. Two types of offers will be availablefor the users via Google Shopper:•Today's offers: which allows the user to see asingle offer redeemable for discounted goods orservices in their area.•Nearby offers: which allows the user to see alist of offers in the 'Eat' and 'Play' categories thatnearby businesses have submitted throughGoogle Places.

Business Model

Merchants

Store Merchants Online Merchants

Future Trends• 240 billion dollars annual mobile payment transactions

which according to Juniper will grow 2x to 3x in next 5 years.

• By 2013 sale of NFC phones will exceed $ 80 billion & every 1 in 5 cell phones worldwide would use NFC technology

• Google predicts by 2014 50% of cell phones will use NFC technology & NFC transactions alone will cross $ 50 billion mark

• Mobile money transactions will reach $ 700 billion by 2015

Looking at the future trends, it is safe to say that very soon thecredit cards and leather wallets will get replaced bysmartphones and the smartphone will become the Wallet