Google Archive

Google, a company whose reach now expands far beyond its humble beginnings as a search engine, recently announced two new services: Google Wallet and Google Offers. Yes, it seems as if Google wants to play a role in every part of your life, whether it be researching for a paper, finding anything you want on the internet, sending emails, finding your way around, creating the software on your cell phone…the list goes on and on. And now, Google has entered the realm of payment. With Google Wallet, Google promises to “make your phone your wallet.” So how does it work? Why is it cool? What’s Google Offers and why do I think Google Offers is a much more promising service as this point? Read on to find out.

How Google Wallet works:

Without getting too technical, let me explain the basics of Google Wallet. While the world around us has evolved and is rapidly evolving, the ways in which we pay for things has undergone few changes. Since the Lydian people first invented the concept of using coined money about 3000 years ago, payment has only progressed from coinage, to paper money, and to small plastic cards. Google claims that it is on “the brink of the next big shift.” So, is it? Google Wallet is an app that can be downloaded to your Android phone and is a way for you to pay for your purchases with your credit or debit card, using your phone. If you have been in a taxicab in New York City recently or in gas stations across the country, you have probably seen MasterCard’sPayPass. Well, Google Wallet works in a similar way. Using Near Field Communication (NFC), wireless technology that enables data transmission between two objects when they are brought very close together, Google Wallet allows you to tap your phone on the credit card reader instead of having to pull out your wallet and swipe your credit card. Google Wallet offers more protection than your average leather, velcro, or duct tape wallet. Before every payment, Google Wallet makes you enter a PIN, so it knows that the phone is still in the right hands. In the event that the phone is lost or stolen, Google makes it easy to cancel a credit card, a process that currently seems to be painstakingly difficult.

To a high schooler, like myself, Google Wallet sounds pretty cool. I use my phone for just about everything else, why don’t I just pay with it? The truth is, though, many high schoolers nationwide do not have credit cards, rendering Google Wallet pretty useless to our generation. You may be thinking, “but my parents will still use it, right?” As of right now, the answer is maybe. Granted, Google will most definitely expand Google Wallet, but, when Google Wallet is launched, it will ONLY be compatible with the Nexus S 4G from Sprint (not the most popular phone on the market…). Moreover, while Google will offer a Google Pre-paid card, Google Wallet will only work with Citi Mastercard and will not be offered in that many locations.

At this point, it may seem like I am dismissing Google Wallet as useless, but I am not. I do see the value of Google Wallet. At this point, you might as well just take out your credit card and swipe it. Google understands that, and, as a result, will continue to build on Google Wallet to make it more accessible and to expand it beyond credit cards. In essence, Google wants to securely replace everything in your wallet except your cash and your ID. And, seeing that Google knows a thing or two about success (not counting Google Wave), I think they have a good shot at it. But, again, the service that was most enticing to me was Google Offers. Here’s why:

How Google Offers works:

If you have ever seen or heard of the show Extreme Couponing or have seen the array of coupons in the newspaper, you can understand how crazy coupons can get. Google Offers seeks to simplify that craziness. So what is it, and how does it work? Technically, I have mislead you to this point. Google Offers actually incorporates Google Wallet, so it is not entirely a separate entity. It does, however, have many individual aspects that seem much more promising than Google Wallet’s credit card replacement.  Essentially, Google Offers is a new product to help you find great deals in their area and coupons through a daily email. Then you can use your Google Wallet application to use this coupons and discounts at the participating retailers. This process makes saving through coupons a much more pain-free process and would certainly save our friends on Extreme Couponing a whole lot of time.

Of course, these new services will also help businesses, and, in classic Google fashion, Google demonstrates this help through a cheery video (shown below):

Only time will tell how successful Google Wallet and Google Offers will be. I have a feeling Google will find a way, though.

On a completely separate note, since you have made it this far in the article, I wanted to welcome you back to GadgetHigh. There has been no writing on here since September because, well, school pretty much took up all of my time. I will start writing more often, and I am always looking for new writers. Make sure you make an account by clicking “Register” at the top of the page, and, if you would like to write, send an email or a written article to postings@gadgethigh.com

As always, leave any questions, comments, thoughts, or concerns below!