The demand for mobile transactions is gaining speed. Global mobile transactions predicted to be USD $241 billion in 2011, growing to more than $1 trillion by 2015. New technologies and alliances are emerging. Mobile-payment solutions such as Google Wallet and Apple’s embedded NFC (near field communication) payment system is the first step.
Google recently launched its mobile payments technology, Google Wallet. The idea is to replace credit cards with phones containing a special chip that can be tapped against readers at cash tills in shops to make payments.
The technology has been on trial in New York and San Francisco since May with about 1,000 employees of Google and its partners in the venture, including MasterCard and Macy's department store.
Anyone with a Sprint Nexus S phone, which runs on Google's Android operating system, will be able to use their phones to make payments. Customers will have to sign up for a Citi MasterCard account or get a Google Prepaid Card.
Google Wallet will be marketed in the US only, although the pre-paid card will work internationally. It can be used at any of the 300,000 shops and other outlets in the US and internationally that accept MasterCard PayPass.