Google Wallet is the latest of the Near Field Communication (or NFC) systems to hit the digital world, perhaps signalling the end for the humble leather wallet. With the application, money and cards can be loaded onto your handset, allowing items to be paid for with a quick swipe of the phone without hanging around in long queues. The consumer can also be rewarded with the latest offers. No more holding onto paper vouchers and remembering to use them when in store. So why Google Wallet? Or more to the point… Why NFC at all?
Essentially the NFC system is a tool for convenience. The idea is undoubtedly exciting. The problem is seeing to what extent the benefits outweigh the dangers of keeping all your financial information in one, digital space. It may be convenient to skip queues, forget about vouchers, and transfer money at a click, but it may seem less convenient if your phone is lost or stolen, or perhaps if a merchant asks for cash – you thought you didn’t need your wallet anymore. Google rebuff the security argument by claiming that the digital wallet is in fact safer than the physical equivalent. The system is protected by a pin and secured with encryption, whereas a wallet’s only protection is often just a person’s trouser pocket. What if the phone is stolen you may ask? Well not everyone has the software to completely wipe their phone’s memory. This means you will still have to cancel your bank cards, even though you will still have them at home!
For any technology to become part of daily life, first and foremost it needs to be a better system than what is currently available. For NFC to make a truly social impact it must stay safe and simple. There is little argument against the simplicity of the technology. If you don’t mind syncing your bank accounts to the software then the tool appears easy to use. The interface is almost self explanatory, enter your pin, choose an account, transfer to another person/merchant’s account by holding your phone close to reader, and you’re done. The system will then also sync any relevant offers ensuring you have the best possible deal. All good then…
Well there are significant drawbacks that come with the Google Wallet compatibility. The problem is that this makes for a pretty extensive list:
- Model – For the time being the app is only available on the Nexus S 4G.
- Cards – The only cards taken currently are most Citi® PayPass™ eligible MasterCard® credit cards and the Google Prepaid Card.
- Merchants – Although many large corporations will take the system on, it will take a long time for the NFC readers to become universal and readily available.
- Battery – The handset must be on to complete the transaction.
- Digital – As with all apps there is the threat of malicious applications extracting data.
Google ‘Wallet’ is certainly a revolutionary tool in mobile purchasing, although not necessarily a major step forward. The system has some flaws and incompatibilities which detract from the obvious benefits of the application, until these are addressed then Google’s attempt at NFC may hit too many stumbling blocks. The recent law suit with their nearest competitor PayPal may not have tarnished their reputation much, but with a more integrated system PayPal may still reap the rewards. 
