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What is Google Wallet?

September 20, 2011 By 21 Comments

Google is an innovator, no one can deny that. They are encouraging the move to the cloud, they produced the first smart phone operating system, with Android, that could actually compete with the iPhone, and they have sidewalk navigation with Google Maps. If you really took a second to think, you would probably realize that most of what you do is tied into Google in someway.

 

How Will Google Wallet Affect the Stock Price?

what is google wallet

At the end of May, 2011, Google announced a new service called Google Wallet. This new service may or may not affect the stock price because as we mentioned before, when companies release news the stock price typically drops. But with a company like Google that is constantly releasing new products and services, the anticipated earnings from this product could already be priced into the stock price.

 

Google Wallet: A New Way to Pay.

 

Google Wallet is an Android app that makes your phone your wallet. It stores virtual versions of your existing plastic cards on your phone. Simply tap your phone to pay and redeem offers using near field communication, or NFC.

 

So this will work on Android powered devices, further cementing Google’s prominence as a top smart phone OS provider. Instead of carrying around a wallet, you will be able to store all of your credit card ‘tap-to-pay’ information on your Android device. When you tap your phone, your payment will be made with the card information that you have authorized.

 

Is Google Wallet Safe?

The service is not released just yet, but when it is many users will question the security of placing all of their credit card information on one device. I imagine it will take some time to catch on, though early adopters will likely lead the way. One of the nice features is the PIN safety feature. Much like a debit card, in order to make a payment after tapping, you will have to enter a secure pin number that you have selected.

google wallet

Your payment information is encrypted and stored on a computer chip on your phone called the Secure Element. The Secure Element is like a separate computer that can store data and run programs. The Secure Element is separate from your Android phone memory and designed to only allow trusted programs to run on this chip.

 

I will be interested to see how things work out with Google Wallet once it is released because unlike many of the other services they roll out, this type of service can not be beta tested.

What do you think? Will you jump to use Google Wallet?

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About LaTisha Styles

"Money is a tool. Use it to get where you want, but don't let it control you."

Writer, runner, competitive as heck. Love to laugh and make others laugh. Focused on helping you build success and stay motivated along the way. Start investing now and let’s build wealth together.

  • http://yell0brickrd.blogspot.com Alex Young

    This is an interesting idea. That they are innovators is something nobody could really argue with.

    I think it might take a while to catch on but its the same with most innovations. As soon as its security is proved and it establishes some social proof i’m sure people will jump on the bandwagon.

    Its amazing how rapidly society has evolved to a cashless society. If this proves to be a phenomenon we may even be progressing to cardless one!!

    • http://www.FSYAonline.com LaTisha

      Cash is so…yesterday :)

  • http://blog.familymoneyvalues.com Marie at familymoneyvalues

    It’s extremely unlikely that I will use it unless somehow there is no other choice!

    • http://www.FSYAonline.com LaTisha

      I definitely won’t be an early adopter but I might give it a try.

  • http://www.moneycone.com/ MoneyCone

    I’m quite curious too! Though the response so far has been lukewarm, Google has a way of improving rapidly.

    Can’t believe Andriod has become so popular!

    • http://www.FSYAonline.com LaTisha

      I think most people are scared of the safety of storing all of their bank information on their phone. But when you think about it, all of your information is stored on the strip of your credit card anyway. I guess we’ll see what happens once it’s released.

  • http://www.krantcents.com krantcents

    I just read that Google is introducing Google Deals which uses Google Wallet in some cities. Google’s product does not require minimum participation either. Soon, we will see what the limits of these plans.

    • http://www.FSYAonline.com LaTisha

      I’m sure they won’t need minimum participation since most everyone has a Google account. My only concern is them trying to capture every market and losing focus on what they do well, search.

  • http://moneymamba.com/ JT McGee

    Google is smart to start breaking into the finance space. A data-centric company, they could really make it big with finance should this Google Wallet concept take off.

    How it will affect the stock price is anyone’s best guess, but given the recent valuations that the market is giving to Google, it’s clear that Wall Street isn’t looking for that much growth from the internet’s behemoth. This new product will be very, very interesting.

    • http://www.FSYAonline.com LaTisha

      I agree. I don’t expect this one product to do much to move their price. I’m still questioning whether I should get in now or just keep watching it go up like I’ve done the last few years lol

      • http://moneymamba.com/ JT McGee

        LOL you and me both. I’ve got a great seat on the sidelines, as I have for the past 4 or 5 years.

  • http://twitter.com/MoneyIsTheRoot1 Money Is The Root

    I will definitely use it… NFC is a great technology…I especially like that it will eventually integrate gift cards, coupons, and automated discounts etc.  I hate going to a store like Express and calculating which of their 50 coupons is the best based on what I buy… I like it all automated, and if possible, paperless!

    • http://www.FSYAonline.com FinancialSuccessforYoungAdults

      Ooh Express! Shwanky! lol To be honest, after hearing about the improvements they’ve made thus far, I think I would try it as well.

  • http://novelinvestor.com Novel Investor

    I’m always one to have cash on hand.  But I also think that people are more accepting of new technology as far as money and spending is concerned than 10-15 years ago.  Combine that with the Androids growing market share puts Google in a unique opportunity (similar to Microsoft in the 90s) to become the world leader in smart phone tech.

    • http://www.FSYAonline.com FinancialSuccessforYoungAdults

      It’s crazy to see how big Google is becoming. I personally think they are more than just a search engine as some people like to say. They could be the next dinosaur stock after a few years. (kind of like railroad stocks)

  • http://twitter.com/FGSW FatGuy Skinny Wallet

    What an interesting concept!  I am definitely on the fence about this one – On the one hand, I would be leary about my security, but on the other hand, like you said ‘cash is so yesterday’ and we enter our private information EVERYWHERE already.  If I do jump on the bandwagon, I’ll probably be at the end.

    • http://www.FSYAonline.com FinancialSuccessforYoungAdults

      It’s ok to be a late adopter. A few months ago when I first published this I thought it would take a while to catch on, but it looks like after some testing it’s becoming more popular. I still kind of want to wait a little. That and I don’t have an Android phone yet :)

  • http://twitter.com/squirrelers squirrelers

    I have an Android phone, yet will want to wait a bit before trying this.  When it comes to security, I’m happy with not being an early adopter:)

    This is just the beginning. Or maybe it’s a part of a never ending continuum of change. Either way, progress keeps marching on! Best to stay dialed in to emerging trends and technologies.

    • http://www.FSYAonline.com FinancialSuccessforYoungAdults

      You’re right. Something has to replace the check. With the option to scan and deposit, there really is no need for a paper check.

  • http://www.myjourneytomillions.com Evan@MyJourneytoMillions

    I am waiting for the Google Nexus Prime and I will absolutely use this service! but it doesn’t seem like it will really catch on considering most places still do not have the tap and pay option (vs swiping). 

    • http://www.FSYAonline.com FinancialSuccessforYoungAdults

      Yeah, it’s going to be interesting to see how businesses decide to adopt this technology. I bet the incentive will come from the major card companies. They might even give out updated devices to encourage the switch.