Google has unveiled the next stage in the evolution of the payment industry with Google Wallet, an app that will let your smartphone act like your wallet. Simply tap your phone to pay with a Citi MasterCard or a prepaid Google payment card. In addition to payments, Google Wallet can also support offers, loyalty cards, and gift cards. Your phone does need to be charged and turned on, but you won’t need a network connection.

 

 

 

Initially, Google Wallet will only be available on the Samsung Nexus S 4G by Sprint and the phone will require an NFC chip. Android is the fastest selling product on Sprint’s network and in the future, all Google Android phones will be equipped with NFC technology. Other mobile devices and platforms will most likely be developed over time, assuming that they have NFC chips on their phones. Early partners include Citi, MasterCard, First Data and Sprint.
 
Google Wallet will be tested in San Francisco and New York, with a national launch scheduled for this summer. Some early merchant partners include Macy’s, Subway, American Eagle, Walgreen’s, Bloomingdale’s, Guess, ToysRUs, and Radio Shack.

 

Will a new payment option change the way people shop? Will the appeal of a lighter purse or unbulging back pocket encourage shoppers to embrace the convenience of this new service? While there might be an obstacle of trust and security to overcome, I’m very excited to see how merchants incorporate this technology into their marketing efforts.