Google, Visa team up on mobile payments

Reuters

Google Inc (Mountain View, Calif., U.S.A.) has enlisted Visa Inc (San Francisco, Calif., U.S.A.) in its effort to push mobile payments, striking an agreement to allow Visa account-holders to pay for store purchases with their smartphones.

Visa comes onboard a “Google Wallet" project already supported by Citigroup, MasterCard, Sprint Nextel Corp and First Data. In May, the group announced a trial of a system that lets shoppers store money on phones and pay at checkout.

Rival Isis, a venture between Verizon Wireless, AT&T Inc and T-Mobile USA, has already signed partnerships with all the major card networks, including MasterCard and Visa.  But while Sprint announced the launch of the Google Wallet service on Monday, Isis has said its rival service will not launch until early next year.

Google's system competes with plans by other top U.S. banks and mobile phone companies and employs near-field communication (NFC) technology, used widely in Asia.

On Monday, Google and Visa said the Internet search leader had received a worldwide license to Visa's "paywave" -- similar to Mastercard's PayPass -- enabling its installation on Android smartphones. Customers link their credit or debit bank accounts to Android phones with the Google Wallet app installed.

They can then tap their phones -- which come with an NFC chip-- at specially installed terminals at checkout to effect a purchase.

"This agreement extends Google Wallet to Visa account holders worldwide," said Stephanie Tilenius, Google's vice president of Commerce and Payments. "This is a crucial step toward realizing our shared vision for the future of mobile commerce."

For U.S. banks, mobile payments are a way to wean their customers off the use of cash and generate more revenue. Merchants pay banks a fee every time a shopper buys something with a credit or debit card and Google said it would not take a cut of those fees from the new pay-by-phone system.

(Reporting by Edwin Chan; editing by Andre Grenon)

Related Articles

Google to unveil mobile payments

Telefonica O2, Deutsche Telekom, Vodafone plan mobile payments company

MasterCard hires former Orange VP of Mobile Payments

A new era for mobile cloud billing and payments

ArticleTools

Featured Big Data Reports

Market Opportunity: Big Data in the Internet of Things
Big Data and Analytics software and applications will play a crucial role in making IoT a success. The data generated through sensors embedded in various things/objects will generate massive amounts of unstructured (big) data on real-time basis that holds the promise for intelligence and insights for dramatically improved decision processes.

 

Structured and Unstructured (Big) Data in Telecom Analytics
This report provides the reader with a broad understanding of telecom data (structured and unstructured/big data) and related analytics. The report identifies market drivers and opportunities as well as forecasts for certain key growth areas such as deep packet inspection.

 

Telecom Carrier Big Data Operations, Applications, and Services
Telcos have a major advantage in that they have many sources of data but if they want to monetize that data and derive meaningful, actionable analytics it could be challenging due to the complexities of correlation, prediction, and the massive volumes of data from different sources.

 

Affordable Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles

 

 

 

Featured Events & Partners

The Telecom Exchange (TEX)
Wednesday, June 24, 2015

Cipriani Wall Street, New York City

Designed to navigate enterprise and carrier network operators through all carrier hotels and colocation houses available in the US and globally.

Visit event website...