banking – SomeGadgetGuy

Google has found itself in a sticky situation when it comes to Wallet. While trying to move forward with Tap+Pay NFC functionality, it ran into security road blocks with the major cell phone carriers who were developing their competing ISIS payment system.

Recently, Google has evolved what Wallet is. Starting with a more PayPal-like money sending service tied to GMail, including membership and rewards cards, and now moving Wallet out of its digital app situation and into your real-world um… wallet.

Now you can grab a Wallet card, which ties to your online Wallet account. If you have funds in Wallet online, you can use your card anywhere Mastercard is accepted to pay for goods and services. You can also use it to make cash withdrawals at ATM’s. As other online payment systems have started making inroads into the general shopping experience, none of them have been able to rival old fashioned plastic, so this Mastercard compatibility is pretty key.

It’s a handy end-run around the Tap+Pay fiasco, though I do hope we can see some of the NFC functionality return to non-Nexus handsets outside of Sprint (currently the only carrier supporting NFC Wallet). The timing on this is also critical as we’re about to see Amazon’s payment system go wider with a new set of developer API’s allowing smaller merchants to use Amazon’s one-click payment system on other sites.

(via Google Wallet)

The dream of mobile payments, tapping a phone to a store kiosk to pay for your shopping. Google’s been slowly pushing into this consumer relationship with Wallet. Storing your credit card information, and utilizing NFC to tap & pay at select retailers. This hardware functionality has progressed very slowly as cell carriers have been trying to push a competing standard called ISIS, which uses a different kind of security which is incompatible with Google’s offering. Pretty much means we consumers get left without a working solution. Any time there’s a “format war” it’s bad for the industry (remember HD-DVD vs Blu-Ray). As it stands now, only 29 phones have proper NFC tap & pay functionality. I’m sure you notice a disturbing lack of Verizon and AT&T handsets on that list…

We’ve heard little news from the Wallet team over the last several months, but it looks like Google has been busy working on a Wallet expansion. Rolling out soon to Android users in the United States, Wallet is about to learn a few new tricks.

Google opened up the ability for Wallet users to send money to other Wallet users through GMail, and now that’s coming to the app. In a clear shot at services like Paypal, transfers from a linked bank account are free, and a 2.9% fee will be attached when sending money with credit or debit card.

In addition to payments, Google is also expanding the scope of Wallet to take some of the strain off of your physical non-digital wallet. If you’ve got a stack of store Loyalty cards, you can leave them at home now. Wallet will store and track your cards, coupons, and points alongside your purchases. Having used similar services, it’s nice just pulling up the card on my phone instead of having a bunch of filthy, peeling, plastic tabs on my key ring.

The Wallet update will roll out this week.

More info on the Google Commerce blog.