Officially announced this Thursday, Google wallet has arrived in US bringing brand new changes to online payment systems. With Google wallet you can just wave your mobile on Mastercard paypass terminals and the payment will automatically be made.
Yes it is that easy. This facility has been currently introduced only on the Nexus S handsets. Google wallet works only on NFC (Near-Field-Communications) based smartphones. According to engadget, this service also works on non-NFC phones but will require a NFC sticker instead.
How does it work: The working is pretty simple.Your card number and all the transaction information is encrypted and stored on a tamper-proof chip from NXP Semiconductor onto the smartphone. Google is calling this functionality as the “Secure Element”, according to CNET. Customers just need to enter their PIN to open the Google wallet application and carry on their transactions.
What If? Yes exactly, i was too wondering about that. Fortunately there are no What If’s!!! Google has assured us that if there be a chance that your phone is lost your banking credentials will not be compromised and your financial entities will be left intact. A thief should firstly have to bypass your smartphone security and then has to bypass Google Wallet App security. That’s not as easy as it sounds. Bypassing Google Wallet security is no child’s game, if the app senses a wrong password has been entered too many times, the SECURE ELEMENT locks in itself. No transactions can be carried out in this state and can only be revived by resetting it. Successful reset can be performed only when a secret combination is entered provided by the issuing bank, the Trusted Service Manager and the user. Same is the procedure if you forget your PIN.
For other dangerous ideas that slug your mind, you can read an article here to address all your possible vulnerability issues.
Google Wallet is currently only available in US, but slowly it will hit our streets too. Google has described a nice and simple pictorial representation of how Google Wallet works, check it out over here.
Don’t forget to share your comment on this story! We would like to know your opinion of what do you think about the new Google Wallet. Will it prove to be a success and replace Paypal and all other online payment services or will you review your options and then decide?