A new mobile payment system, created by Google, has been unveiled today. Google Wallet will ‘make your phone you wallet’ by using your smartphone to tap a card reader to buy items with an app. Google Wallet now supports PayPass-eligible MasterCard and Google Prepaid cards but will continue to add more payment options as well as adding to the available phones which is now only Nexus S 4G from Google.
Rob von Behren and Jonathan Wall, Google Wallet founders, said ‘we’re building an open commerce ecosystem, and we’re planning to develop APIs that will enable integration with many partners’ in their official blog post. Some companies have already joined the rewards system which allows for payment, special offers and loyalty credit. Foot Locker, Toys ‘R’ Us and Walgreens have already signed up to this program along with twelve other companies.
Data is secured using a pass code and ‘secure element.’ The Secure Element chip is separate from the rest of the phone and only allows certain applications to get access to data stored on the chip. If your phone is stolen Google recommends cancelling cards though ‘Google Wallet PIN and Secure Element protect your payment card information.’
PayPal has also filed a lawsuit with eBay, the owner of PayPal. ‘Spending time in courtrooms is generally not our thing’ though adding ‘the behaviors of people and competitors make legal action the only meaningful way for a company to protect one of its most valuable assets.’ The lawsuit is filed against Google and Osama Bedier and Stephanie Tilenius, two former PayPal employees who now work in similar roles at Google.