Users of Android mobile devices may soon enjoy the convenience of paying using their smart phones, courtesy of a partnership between Google, MasterCard and Citigroup. For those with Android phones, there will be no need to whip out credit cards – one just has to wave his or her phone before a small reader in the checkout counter to pay for purchases.
A feature on The Wall Street Journal shared details regarding the planned payment system. In addition to bringing convenience to Android users, the move will also improve Google’s advertising business. Through the system, Google will be able to offer more data about consumers to retailers, which can then be used to target ads and discount offers to those users who are near their stores, according to sources who are familiar with the plans.
The project is said to be in its early stages, but the projected end result is enabling users of debit and credit cards issued by Citigroup to activate a mobile-payment application developed for a current model, as well as for other coming models, of Android phones. This will then allow users to pay using their smart phones, virtually turning these mobile devices into electronic wallets.
Aside from the ability to pay, users can also receive targeted ads and discount offers, as well as manage their accounts and track their spending through an app.
Some may wonder, however, whether such a technology is safe. Nick Holland, a mobile-transactions analyst at Yankee Group, shared: “Because it’s contact-less there’s a perception people can grab it from thin air, but it’s actually a more sophisticated technology than credit cards with a magnetic stripe, making it more difficult to steal a consumer’s payment information.”