Google’s ‘Wallet’ App Aims to Turn Our Smartphones into Digital Wallets

Furthering the idea that our smartphones should be able to do it all, Google has announced its “Wallet” mobile app that should soon become available for public consumption. Acting as a digital wallet, this app will be able to store multiple credit cards (no word on bank cards), gift cards and loyalty cards and be usable at a cash register equipped with MasterCard’s “PayPass” near-field communication device.

The idea might seem too-good-to-be-true, but it’s real. With Wallet active, a phone can be waved across a PayPass scanner to have it read the required information and complete the purchase, negating the need to haul out an “old-school” leather-bound wallet and cash or a piece of plastic. For those interested in this kind of service but don’t want to include sensitive credit card details on their phone, Google will also be offering up a pre-paid digital card that can be used like a credit card (at least I assume given the MasterCard logo).

What I’ve described up to this point is just the main feature of Wallet, but Google aims for this service to encompass all of the things that can be involved with shopping, such as coupon redemption and finding a better deal on an item. Merchants will have the ability to offer special deals to Wallet users as well, which would offer some incentive to use the free service and act as a bonus to the shopper.

When at the register, it looks like the app will allow you to decide on a credit card on-the-fly, and then you must click the “Pay with this card” button in order to activate the NFC. An important detail missing from the official blog post announcing this feature is security, so we’re currently unsure how customers will be protected in the event that their phone is stolen. Details such as these are sure to be unveiled along with the public release.

It has to be said that such a service, while free, will have some caveats. Google’s biggest focus across most of its services is data-mining, and Wallet looks to be no different. If you purchase flowers, for example, Google could see that and then display relevant ads to you in the future wherever AdSense advertising is found. For some, this is not going to be ideal. But for those who don’t mind, Wallet could well become a big thing in the future, and is sure to spawn a slew of competitors if it does take off.

Because Google Wallet is a mobile app, it will do more than a regular wallet ever could. You’ll be able to store your credit cards, offers, loyalty cards and gift cards, but without the bulk. When you tap to pay, your phone will also automatically redeem offers and earn loyalty points for you. Someday, even things like boarding passes, tickets, ID and keys could be stored in Google Wallet.