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?
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.
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?