Google Prepares to Trial Near Field Communication used to Pay at Checkout with your Smart Phone

Posted on March 18, 2011 by Mark

Near Field Communication or NFC is a process where 2 NFC-enabled devices can share data when in close proximity (usually within 4cm or less). Normally, one device initiates communication by generating a RF field that can power a passive target to generate a signal that shares information. The fact that one device does not need to be powered means they can be very low cost and simple to operate.

Google has built NFC technology into it’s Android OS making it possible for Smart Phones like the Nexus S to share information with ‘Tags’. Simply Tap the phone on the Tag to detect and share information. There is an API where developers can build all sorts of Apps to import information into phones.

In the example video above, you see a Google Places placard which is issued to retail businesses. Tap&Go will provide a range directly into your phone from their Google Places listing. Information would include HotPot Reviews, Coupons as well as other info like complete menu’s and more. This same info could also be accessed using a phone’s camera and QR Codes.

Mobile Payment is a new and rapidly evolving alternative payment method using Mobile Phones. Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone. Google has specifically enabled Smart Phones using their newest versions of Android OS to use what is called ‘Tap&Go’ payment technology.

Just like a plastic card, your phone shares details about your account. The merchant keys in a transaction and the buyers enters pin codes for verification.Transactions are approved and receipts back up the process just like current transactions. Hmmm… what happens when my phone is out of charge?

This technology is still new. Google plans to start testing mobile payment services in stores in San Francisco and New York in July. Tests will require merchants to have special payment terminals and consumers will need to have NFC enabled phones, which will be a standard in coming years.

Google will face competition from EBay’s PayPal and ISIS, a joint effort of several mobile companies. We will also see rivals Apple developing their own systems as we can be sure they won’t work with Google. Maybe iPay (and pay and pay)?

About Mark

Founder of Web Reservation Systems, focused on helping businesses in the Australian Accommodation travel sector get more value from Internet Marketing. Originally, we opened up in 2001 as a supplier of Front Office Software linked to Online Booking facilities. That allowed motels and hotels to add booking buttons to their websites as well as sell through Global Distribution Systems. You could say this was an early 'Channel Manager' because it allowed the property manager to simply control price and availability for a diverse array of wholesale and retails websites. Next, we started building websites to profile our customers (Australian Holiday Guide). That lead to building websites for customers as a favour. Now do about 80 websites a year using BurgundySky and Joomla. For small businesses I recommend using BurgundySky as it is very easy to start and manage. Joomla is also great, but harder to install and maintain for a small business. For a large website, Joomla is great - here's what we did for Golden Chain Motels, Australia largest accommodation provider with over 335 locations. Our business is based in Byron Bay, NSW. Byron Bay is a great place to live and work. I have 2 kids (12 and 14) who are both born here and my wife, Shobhan Oliver)is a successful artist.
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One Response to Google Prepares to Trial Near Field Communication used to Pay at Checkout with your Smart Phone

  1. Pingback: RFID Tags and the next Big Thing in FaceBook Social Media Marketing | Motel - Hotel Website Design

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