Wednesday, August 01, 2012

Could Google Wallet's New Feature Jumpstart NFC?

Could the new feature added to Google's Wallet ease security concerns and jump start NFC?

The big concern with NFC phones is that they can be hacked and the secured info on it, will be easily stolen.

Did Google find a way to get around the security concerns of NFC phones?

 From NFCWorld Google Wallet 2.0 the easy way to pay?

Unlike version 1.0, which needed card issuers to become directly involved in provisioning their payments cards onto the wallet, Google Wallet 2.0 allows a single prepaid MasterCard to be stored on the secure element.

 When a user conducts a mobile payment, this prepaid card draws on a credit or debit card which the user has previously linked to the card account to fund the purchase

Here's how they do it:

To support all credit and debit cards, we changed our technical approach to storing payment cards. The Google Wallet app now stores your payment cards on highly secure Google servers, instead of in the secure storage area on your phone.

 For these transactions, the merchant will not receive your credit or debit card credentials. Rather, Google Wallet will presents the virtual MasterCard card to the merchant.
It also could make for much quicker adoption:

This new approach speeds up the integration process for banks so they can add their cards to the Wallet app in just a few week.

 Who are the winners and losers with this?

It does appear that the company we recently highlighted as our "NFC Play" is smack dab in the middle of this major investing wave.

Their extensive IP NFC portfolio could make them the "Next Qualcomm".

 The tool that turned $10,000 into $2,800,000 in 2 years.

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