Major retailers are joining forces with Google to test Google Wallet, an Android application that allows consumers to use virtual versions of their existing plastic credit cards. Consumers can pay for an item using a credit card or gift card, redeem promotions and earn loyalty points — all with a single tap of their smartphone.
Google Wallet uses near field communication (NFC) to make secure payments by tapping the phone on any MasterCard PayPass-enabled terminal at checkout. All payment card credentials are encrypted and stored on a chip called the secure element that is separate from the phone memory and is only accessible by authorized programs. Google is working with VeriFone, Hypercom, Ingenico, VIVOTech and others to develop the next generation POS system.
Retailers participating in the trail include American Eagle Outfitters, Macy's, Bloomingdale's, Champs Sports, The Container Store, Duane Reade, Foot Locker, Guess, Jamba Juice, Peet's Coffee & Tea, RadioShack, Subway, Toys "R" Us and Walgreens.