Google Wallet

Google Wallet
Developer(s) Google
Initial release May 26, 2011 (2011-05-26) (US only)
Operating system Android, iOS
Website www.google.com/wallet

Google Wallet is a peer-to-peer payments service developed by Google that allows people to send and receive money from a mobile device or desktop computer. A Google Wallet account is linked to an existing debit card or bank account. Google Wallet includes the Google Wallet app and the Google Wallet Card. The app is available for Android devices running Android 4.0 and above, and for iOS devices running iOS 7.0 and above.[1] The physical Google Wallet Card is an optional addition to the app, which allows users to make purchases at point-of-sale (in stores or online) with the money in their account. You can also use the card to withdraw cash at ATMs.

Google has modified the function of Google Wallet since its inception in 2011. Near-field communication (NFC) technology was previously associated with Google Wallet, but as of late 2015, NFC capability is only available with Android Pay, which is a separate application available only to Android users.

Service

Google Wallet lets people send money to each other using the web, Gmail, or an app on their phone or tablet. To send money, a user enters the email address or phone number of the recipient.

An existing debit card or bank account must be linked to Google Wallet. Users can link up to two bank accounts.[2] Received money goes to the Google Wallet Balance and stays there until the user decides to cash out to a linked account, or spend it directly from there using a Google Wallet Card.

The Google Wallet app is available from either Google Play or the App Store. After downloading the app, the user creates a four-digit payments PIN for managing everything within their Google Wallet account. The PIN verifies access to the Wallet app on the user’s mobile device and allows debit transactions or cash withdrawals through the Wallet Card.[3]

The current version of Google Wallet, launched in September 2015, does not allow users to make point-of-sale purchases with their mobile devices (using near-field communication, aka NFC), as earlier versions of the app did. As a result, any gift cards, loyalty programs, and promotional offers stored in an older version can no longer be used through Google Wallet. For Android users, those outstanding offers and gift cards are automatically transferred to Android Pay. For iOS users, instructions are provided to export the offers for alternative use.[4][5] Google Wallet and the Google Wallet Card are currently available in the US only. The Google Wallet Card is welcome wherever Debit MasterCard® is accepted.[6]

History

Early history

Google demonstrated the original version of the service at a press conference on May 26, 2011.[7] The first app was released in the US only on September 19, 2011.[8]

On May 15, 2013, Google announced the integration of Google Wallet and Gmail, allowing users to send money through Gmail attachments.[9] While Google Wallet and the Google Wallet Card are only available in the US, the Gmail integration is currently available in the US and UK.[10]

Distinction from Android Pay

On February 23, 2015, Google announced that it would acquire the intellectual property of the carrier-backed competitor Softcard and integrate it into Google Wallet, and that AT&T Mobility, T-Mobile US, and Verizon Wireless would bundle the Google Wallet app on their compatible devices. The effective merger resulted in the new service known as Android Pay, a competitor to Apple Pay and similar NFC mobile payment service.[11][12]

As of late 2015, Google Wallet was no longer a means of payment for point-of-sale purchases. Instead, Google moved all of the NFC functionality to Android Pay, a tap-to-pay service available for Android devices only. Users tap their mobile devices to a point-of-sale terminal in order to pay with a linked bank account or debit card.

Separate from Android Pay, Google Wallet now allows peer-to-peer transactions for cases such as when people want to split the cost of shared expenses, reimburse each other, keep track of joint spending, or give money as a gift or loan. The Google Wallet Card provides a physical means to make point-of-sale purchases using the funds in a Google Wallet Balance.

While Android Pay is only available to Android users, Google Wallet is available on iOS as well, which makes Google useful in the field of mobile payments, even for non-Android users. For those that do Android, the two products together (Android Pay and Google Wallet) offer a comprehensive payments management system, a “tool for staying in charge of the bank account.”[4] Users can link their bank accounts and / or debit cards to Android Pay as well as to their Google Wallet app. With this approach, users can manage their money from one source, with the ability to:

Business model

Google doesn’t currently charge users for access to Google Wallet. Sending and receiving money is free, as is adding money to a Wallet Card through a linked bank account. A 2.9% fee applies to funds added via debit card.[4] There are limits on how much money users can add to their Wallet Balance, withdraw from the linked account or card, or send and receive to other individuals. These limits are set per transaction and within certain time periods.[13]

Sending money from a Wallet Balance or debit card is generally instant, but transactions may take up to a few days to complete. Sending money from a linked bank account usually takes 3 days but can take up to 10 business days depending on the bank.[13]

While Google doesn’t have explicit revenue coming in from their Wallet ecosystem (the web service, app, and the Wallet Card), the product is part of a larger suite of e-commerce products, including Android Pay, which integrates loyalty programs and promotions from other businesses.

Security

Google Wallet protects payment credentials by storing user data on secure servers and encrypting all payment information with industry-standard SSL (secure socket layer) technology. Full credit and debit card information is never shown in the app.[14] All Google Wallet users are also required to have a PIN to protect access to their Wallet account. The payments PIN is used for:

Google also recommends having a general passcode on mobile devices for additional security.

In some cases, users have to verify their identity in order to make certain transactions. If prompted to do so, the user will visit the Wallet website and follow steps to ensure their accurate identity. This is in adherence with FDIC financial regulations that require payment providers to ensure customer identity.[3]

Regarding the tokens and NFC technology previously used on the old version of Google Wallet and now on Android Pay, there have been no reported hacks.[15]

If a Google Wallet Card is lost or stolen, users can immediately cancel card access to it by signing into myaccount.google.com. Google also offers the additional flexibility of temporarily locking the card if a user suspects that the card has simply been misplaced. In the event of unauthorized transactions, Google Wallet Fraud Protection covers 100% of verified unauthorized transactions made in the US reported within 120 days of the transaction. Only US residents who have Wallet accounts associated with a US address are eligible for coverage under this policy.[16]

Criticism

Regarding an earlier version of Google Wallet (in 2012), an analysis by security company NowSecure revealed that some card information stored by Google Wallet was accessible outside of the application. It is suggested that hackers could create a way to intercept data by eavesdropping on Google Analytics, which monitors apps used on the Android OS. A previous analysis by the same firm revealed a number of other exploits that have since been fixed.[17]

Privacy

Privacy concerns include the storing of data regarding payment information, transaction details, payment attempts and other information stored by Google indefinitely. The privacy policy for Google Wallet, called the Google Payments Privacy Notice, indicates that much of the data is stored but may not be shared outside Google except under certain circumstances.[18] Information that may be collected upon signing up includes credit or debit card number and expiration date, address, phone number, date of birth, social security number, or taxpayer ID number. Information that may be collected about a transaction made through Google Wallet includes date, time, and amount of transaction, merchant’s location and description, a description of goods or services purchased, any photo the user associates with the transaction, the names and email addresses of sender and recipient, the type of payment method used, and a description of the reason for the transaction if included.[19]

The storage of such personal information about users' transactions is of significant financial value to a company that earns much of its revenue from data, but may be controversial to users aware of the policies.[20] Information collected is shared with Google’s affiliates, meaning other companies owned and controlled by Google Inc., which can be used for their everyday business purposes. They provide the option to opt out of certain sharing capacities with these affiliates. Google states that it will only share personal information with other companies or individuals outside of Google in the following circumstances:[19]

PayPal lawsuit

Shortly after the initial launch of Google Wallet's first iteration in 2011, PayPal filed a lawsuit against Google and two former employees of PayPal – Osama Bedier and Stephanie Tilenius. The complaint alleges "misappropriation of trade secrets" and "breach of fiduciary duty". The lawsuit reveals that Google was negotiating with PayPal for two years to power payments on mobile devices. But just as the deal was about to be signed, Google backed off and instead hired the PayPal executive negotiating the deal, Bedier. The lawsuit notes that Bedier knew all of PayPal's future plans for mobile payments, as well as an internal detailed analysis of Google’s weaknesses in the area. Not only that, it accuses him of storing "confidential information in locations such as his non-PayPal computers, non-PayPal e-mail account, and an account on the remote computing service called 'Dropbox.'"[21]

Google ran a competitor to PayPal, Google Checkout, from 2006 to 2013. In 2011, Google Wallet replaced Checkout's services, and development on Checkout was officially discontinued in 2013.

See also

References

  1. ↑ "Google Wallet". www.google.com. Retrieved 2016-02-08.
  2. ↑ "Add a bank account - Wallet Help". support.google.com. Retrieved 2016-02-08.
  3. 1 2 "Set up your Wallet app - Wallet Help". support.google.com. Retrieved 2016-02-08.
  4. 1 2 3 "Android Pay vs. Google Wallet: What's The Difference?". Tech Times. 2015-09-07. Retrieved 2016-02-08.
  5. ↑ "Google Wallet relaunches as a Venmo and Square Cash rival". The Verge. Retrieved 2016-02-08.
  6. ↑ "Welcome to a new Google Wallet". Google Commerce. Retrieved 2016-02-08.
  7. ↑ UTC, Christina Warren2011-05-26 12:00:29. "Google Reveals Mobile Payment System: Google Wallet". Mashable. Retrieved 2016-02-08.
  8. ↑ "This Day in Tech: Google Wallet launches". CNET. Retrieved 2016-02-08.
  9. ↑ "Attach Real Money in Gmail with Google Wallet | Webmasters". W3Reports. Retrieved 2016-02-08.
  10. ↑ "Send money through Gmail with Google Wallet - TNC". TNC. Retrieved 2016-02-08.
  11. ↑ "Google Wallet will soon come pre-installed on Verizon, AT&T, and T-Mobile Android phones". The Verge. Retrieved 2016-02-08.
  12. ↑ "Google Wallet, Softcard partner to take on Apple Pay". CNET. Retrieved 2016-02-08.
  13. 1 2 "Fees, limits & transfer times - Wallet Help". support.google.com. Retrieved 2016-02-08.
  14. ↑ "Google Wallet". www.google.com. Retrieved 2016-02-08.
  15. ↑ Olivarez-Giles, Nathan (2015-09-10). "Android Pay Goes Live, Google Wallet Becomes Cash Swap App". WSJ Blogs - Personal Tech News. Retrieved 2016-02-08.
  16. ↑ "Google Wallet". www.google.com. Retrieved 2016-02-08.
  17. ↑ Kevin Fogarty, Even after rewrites, Google Wallet retains gaping security holes, mainly due to Android, itworld, February 10, 2012.
  18. ↑ "How Google Wallet uses credit card numbers – Privacy & Terms – Google". www.google.com. Retrieved 2016-02-08.
  19. 1 2 "Privacy Notice". payments.google.com. Retrieved 2016-02-08.
  20. ↑ Harley Geiger, NFC Phones Raise Opportunities, Privacy and Security Issues, Center for Democracy and Technology, April 11, 2011.
  21. ↑ Schonfeld, Erick (May 26, 2011). "PayPal Lawsuit Against Google Reveals Recruiting Saga And A Deal Gone Sour". TechCrunch. Retrieved May 27, 2011.

External links

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