SECURITY

Google Wallet Brings Speed and Security to Daily Transactions

Rebecca Kutzer-Rice | Date: 06-02-11 | Comments

Google recently unveiled Google Wallet, an Android app that uses your phone�s NFC chip to do anything your old leather wallet does including using credit cards, store coupons and gift cards.

With the widespread use of apps to do everything from park your car to learn battlefield skills, it was only a matter of time before something like Google Wallet came around. The new app aims to replace the traditional wallet by holding your credit card information, as well as coupons, gift cards, and other items.

Google Wallet uses a NFC (near-field communication) chip, which allows two nearby objects to communicate over a short range. NFC-enabled devices can use the chip to read smart signs and posters and send data to other devices. The chip can also emulate contactless credit cards, such as Citi�s PayPass.

The new Google Wallet securely stores credit card information to make fast transactions. (Source: Google)

Right now, only Citi�s PayPass and a Google Prepaid Card work with Google Wallet. And since the Samsung Nexus S, an Android phone, is the only NFC-enabled phone in the United States, the technology is limited. But Google is working to bring more credit cards to its virtual wallet, and the company expects NFC technology to spread quickly.

A major concern with any financial technology is security, but Google has made considerable efforts to create a safe app. All purchases will require a pin, and sensitive data is encrypted. If you lose your phone, the data can be remotely deleted�though Google still recommends cancelling your cards.

Possibilities beyond basic payment transactions are also exciting. Coupons, including Google Offers, and loyalty cards are available via the app, which also supports gift cards. It could also eventually hold boarding passes and tickets.

While you do not need a network connection to use Google Wallet, your phone will need to be powered on�a problem if it has run out of battery.

In addition to saving time and money with its easy-to-access coupons, Google Wallet could have environmental benefits by cutting down on receipts and other paper sources.

Visit the Google Wallet homepage to learn more and set up the app on your phone. You can also view a map of your zip code to see nearby retailers equipped with the technology.