Google Takes a Step for Mobile Payment Dominance

March 29th, 2011 at 10:36 am
 


A report published in Wall Street Journal stated that Google is said to be teaming up with Mastercard and Citigroup to develop a mobile payment technology embedded in Android mobile devices. This would allow consumers to make purchases by simply waving their phones in front of a small reader at the checkout counter.

The move is a bullish attempt to gain dominance in the mobile payments realm, a technology being applied in many countries around the world but still in its infancy in the United States. Not only it would make payments easier, Google would potentially earn big through advertising. Sources who are familiar to the subject claim Google would not get a cut from transaction fees.

The planned payment system would also allow Google to offer retailers more customer data, helping them target advertisements and discount offers to mobile payment users living near their stores.

The system would allow holders of Citigroup debit and credit cards to utilize mobile payments by activating a related application, turning the smartphone into a virtual electronic wallet.

Source: Wall Street Journal, photo by Reuters

 

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