Google developing swipe-to-pay smartphone technology

by Steven Mostyn - Mar 28 2011, 12:01

Increasing the idea that smartphones can do pretty much anything, Internet giant Google has joined forces with Mastercard and Citigroup to create a new form of mobile payment that removes the need for conventional plastic cards.

That’s according to a report in the Wall Street Journal, which cites sources close to the matter in its claim that consumers armed with Android-powered smartphones will soon be able to purchase goods by simply swiping their handsets before a special Verifone reading device at the checkout.

The report also suggests the technology will enable Google to provide retail partners with customer data for the creation of tempting mobile advertisements and discount offers—which can then be dispatched to customers located in close proximity to specific stores.

With regard to the payment platform’s projected rollout, the technology’s initial testbed will likely include smartphone users with debit and/or credit cards issued by Citigroup.

This first pass of card-carrying users would be able to eschew conventional payment by simply using their Android smartphone to access an on-screen mobile payment application.

Although Google is not expected to make any money from individual transactions, the company could well turn a profit via the distribution of mobile adverts and store offers.

Google is not alone in its apparent efforts to extend smartphone functionality into the world of quick-swipe retail. Moreover, iPhone maker Apple Inc. and BlackBerry specialist Research In Motion are both working on the integration of similar swipe-to-pay technology.

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