New meaning to "open your wallet"
Google announced this week that it has opened its wallet to consumers, allowing them to associate any debit and credit card with their Google Wallet. It also has eased integration requirements for card issuers wanting to participate in the initiative. With such barriers removed, consumers could now have more ways to make payments from their smart phone using their debit or credit cards. Until now, Citi was the only bank to partner with Google.Under the new program, consumers can link any Visa, MasterCard, American Express or Discover card to a virtual MasterCard account issued by The Bancorp Bank. Although the account is associated with a virtual card (a temporarily assigned, one-time use account number), the customer end user experience is unchanged, as it allows them to use their card directly from the mobile device at the point of sale.
This new move opens the door (technically, the wallet) for consumers and issuers. Will consumers line up to add their cards to the Google Wallet? How quickly will issuers jump on the Google bandwagon? Admittedly, the barrier to entry has been minimized for integration. And with this new configuration, the card issuer (not Google) will still manage any rewards associated with the use of the card.
The modified program is being offered in the cloud, which means card credentials will not be stored on in a secure element on the mobile device but rather remotely in a PCI-compliant database. In addition to this secure way of storing information, Google has also identified a “kill switch” feature which allows the wallet to be disabled if the mobile phone is lost. Earlier this year, Google had security issues with a PIN related access within the mobile wallet on the device. Does this move signal the idea that Google has abandoned the idea of the NFC wallet altogether in favor of the cloud-based offer?
The Google Wallet announcement hopefully gives consumers and card issuers something to consider regarding the ongoing move to mobile payments and mobile commerce. At the end of the day, it moves consumers one step closer to having a mobile wallet option regardless of who issues their card. And it gives issuers the opportunity to think about aligning with Google or consider issuing their own mobile wallet directly.
Related blog posts
How TD Bank Masters Payment Processing Risk
“You learn a lot by following the money,” a great quote that Sara Pinkus, VP of Payments Risk Management at TD Bank, told me before her PAYMENTS 2016 presentation with TD Auto Finance and ACI Worldwide entitled Hide and Seek: Uncovering Your Internal Originators and the Risks They Pose.
IWUs 8 Steps to Campus Payment System Success
Indiana Wesleyan University changed its campus payment strategy and saved $500,000 per year. Zach Whitesel, Director at IWU explains how.
How will Customer Champions Boost eBilling Profits
Two months before our baby’s due-date, we were kicked out of our doctor’s practice. Weeks before, the doctor’s bill confused me and I missed the payment. Now we did not have a doctor and the doctor lost a profitable customer.
60 of the Big Boys Now Accepting Debit Cards for Loans
I was nervous pulling out my flip phone at the party. Would my smartphone-touting friends mock me? Much the same way as I lagged behind in technology adoption, 40 percent of top lenders still do not offer debit card payment processing for loan payments.
The future of campus payment systems
Cutting out the middlemen from campus payment systems will make education more affordable.
Why 2016 Will Be the Year You Love Paying Bills
“Choice” will ring in the New Year as THE word for bill pay services in 2016. That good news for consumers: 2015 frustrated many of them as 85% of organizations did not offer all the choices that consumers want for paying their bills. But the tide will turn in 2016.
70 percent of health plans are not ready for open enrollment
As health plans take the field to compete for 10 million online shoppers, 70 percent of them are not ready. As ill-prepared as a baseball team without an infield, 70 percent of health plans have holes in the member purchase experience.
How do Insurance Leaders See the Future of Payments
46 percent of insurance executives want to simplify their payments value chain as higher revenue, lower costs and stronger security will result from changing the consumer payment experience.
How Will Governments Make Payment Services Simple
Government payment services of the future will make their citizens happier. They will free up new funds for community investment. Simplicity will reign. The key - reducing the middlemen.