Computer Daily NewsGoogle is teaming up with MasterCard and Citigroup to have near-field communication (NFC) technology in all Android mobile devices, designed to allow consumers to make purchases by waving their smartphones in front of a small reader at the checkout counter, according to a Wall Street Journal report.
The planned payment system would also allow Google to offer retailers more data about their customers and help them target ads and discount offers to mobile-device users near their stores, the report claims. But Google isn’t expected to get a cut of the transaction fees.
Nokia has built NFC into some of its Symbian smartphones for some time, while Samsung last year introduced the technology to its Android Nexus line. However – eyeing potential large payoff in advertising revenue – Google aims to make it near-universal in future Android models.
Observers claim the NFC system is safe. “Because it’s contact-less there’s a perception people can grab it from thin air, but it’s actually a more sophisticated technology than credit cards with a magnetic stripe, making it more difficult to steal a consumer’s payment information,” said Nick Holland, a mobile-transactions analyst at Yankee Group.
“A phone is a lot smarter than a card,” said Doug Bergeron, CEO of VeriFone, which makes NFC readers. “It opens the door to a rich experience at the point of sale that retailers really covet.”
Bergeron added that he also expects Apple to embed NFC technology in future iPhones. BlackBerry maker Research in Motion has said its future phones would support NFC.
The market for mobile payments is expected to grow significantly in the next several years, reaching US$618 billion by 2016, according to a MasterCard report.