Coming Soon: Google Wallet Converting your Phone into your wallet

Google is in the process testing its android application “Google Wallet” aiming to convert phones into wallet. Customers will be able to carry versions of their plastic cards on their phone without having to actually carry the bulk of those cards in their leather wallet. Customers can tap, pay and save using Near Field Communication (NFC). Loyalty cards, tickets, receipts all can be kept on this mobile wallet that Google is going to offer.

The applications will be compatible with Nexus S 4G by Google, available on Sprint.  Google has partnered with Citi, MasterCard, First Data, and Sprint for this venture but Google has informed via its commerce blog that many other merchants are also in the process of integrating their offers and loyalty programs with Google Wallet.

In order to ensure safety and security of transactions, Google Wallet requires customers to set up a PIN code, which must be entered before making any purchase. Furthermore, the encrypted payment card credentials are stored on a separate computer chip in the phone called secure Element.

The secure encryption technology of MasterCard PayPass protects the payment card credentials while being transferred from the phone to the contactless reader.

The application will be offered free of cost.