The next generation of payment mediums is upon us and its mobile. Using smartphones and Near Field Communication (NFC) technology 2 providers are set to battle it out to dominate the market. Here’s the lowdown on Google Wallet and ISIS:
Google Wallet was launched in the US launch late 2011 and has been beset by security problems since its release. The ability for a thief to simply clear app data and gain access to the prepaid card left a gaping hole in security. This issue has since been resolved but there is another issue concerning the ‘rooting’ of handsets which Google are still working on. Bugs are to be expected but such an obvious security flaw is a bit embarrassing for Google.
Google Wallet Features
- Available in US only at present
- Transactions enabled by a tap of the phone to merchant’s NFC reader
- App only available for the Sprint Nexus S 4G at present
- For use instore or online
- MasterCard credit cards from Citigroup available
- PIN protected Prepaid Card Account available (PIN stored on phone)
ISIS is a joint venture of AT&T Mobility, T-Mobile USA and Verizon Wireless and is set to launch summer 2012 in the US. ISIS have deals with Visa, MasterCard, Discover and American Express. ISIS claim they are building an open platform and ecosystem to work with ‘all participating carriers, phone models, payment networks, merchants and banks’. Trials for ISIS Wallet will start in Salt Lake City and Austin, followed by a national rollout.
- NFC technology used for transactions
- The phone requires NFC technology, which manufacturers including HTC and Samsung are committed to and is beginning to appear in new models.
- PIN protected Prepaid Card Account (ISIS will provide a small amount to spend free when you start using)
- PIN stored on chip
- Ability to ‘follow’ merchants for special offers
- Location based service. Coupons provided and merchant alerted when customer nearby
Visa expected to offer digital wallet where only username and password required to make purchases online
Ericsson has announced a mobile payment venture with Western Union
PayPal offers a payment card that can be used with smartphones, PC or in store
Square App – transactions completed by registering with merchants then simply providing name when wallet is in vicinity of merchant
LevelUp – users link a credit or debit card to their LevelUp account through which they pay at participating merchants
Boku – stick NFC compatible sticker on your phone and pay with Boku
Buck – 1 click mobile payment solution