GOOGLE WALLET. Hardik Mangukiya ABSTRACT INDIA

Transcription

1 GOOGLE WALLET Hardik Mangukiya INDIA ABSTRACT Over the past few thousand years of evolution, the way we pay has changed shapes and materials. It has gone from gold to coins, paper money to plastic cards and now with Google s venture into the mobile payment industry, we are at the threshold of the next big shift. Google Wallet is a mobile payment Android app that transforms a phone into a wallet. This app utilizes the Near Field Communication (NFC) technology that allows its users to pay for purchased items and redeem offers. Google Wallet is a new wallet application that allows it users to pay for items by simply pointing and tapping their cell phones. Google has stated a vision with its new application being that in the past few thousand years the way we pay has changed several times. We ve gone from coins, to paper money to plastic cards and with Google Wallet they re calling it the next big shift. 1

2 INTRODUCTION Google Wallet is an Android app that converts your smart phone into your wallet. It stores virtual versions (eversion) of your existing plastic cards on your smart phone. Now making payment is just one click away. Google Wallet is a mobile payment system developed by Google that allows its users to store credit cards, loyalty cards, and gift cards among other things, as well as redeeming sales promotions on their mobile phone. Google Wallet uses near field communication to "make secure payments fast and convenient by simply tapping the phone on any PayPass-enabled terminal at checkout."[1][2]. Google is the latest tech company banking on it. At a packed press event in New York, the search giant launched Google Wallet, a method to pay for goods via your smartphone. Google also unveiled a separate initiative, Google Offers, for mobile coupons, working with partners such as Citi, MasterCard, First Data and Sprint, as well as merchants that include Subway, Macy's, Walgreens and American Eagle. Google says it is building an open solution to other financial companies and retailers.[3][4]. Google wallet is a mobile app that stores virtual replicas of our existing credit cards and uses this information to make our payments seamlessly with the help of NFC or near field communication. NFC, or Near Field Communications, is the short-range wireless technology built into a phone that helps make contact-less payments happen. Google noted that by year-end there will be many NFC-enabled phones on the market. In the recent years money has changed their face very rapidly And now money is going to change its face and way of use once again. This new Avatar is Google Wallet. 2

3 NEAR FIELD COMMUNICATION(NFC)- Technology Used In Google Wallet NFC is one of the latest wireless communication technologies. As a short-range wireless connectivity technology, NFC offers safe and yet simple and intuitive and communication between electronic devices. Users of NFCenabled devices can simply point or touch their devices to other NFC-enabled elements in the environment to communicate with them, making application and data usage easy and convenient. With NFC technology, communication occurs when an NFC- compatible device is brought within a few centimetres of another NFC device or an NFC tag. The big advantage of the short transmission range is that it inhibits eavesdropping on NFC-enabled transactions. NFC technology opens up exciting new usage scenarios for mobile devices. Near Field Communication (NFC) is a technology for contactless short range communication. Based on the Radio Frequency Identification (RFID), it uses magnetic field induction to enable communication between electronic devices. The number of short-range applications for NFC technology is growing continuously, appearing in all areas of life. Especially the use in conjunction with mobile phones offers great opportunities.[5]. USES AND APPLICATIONS NFC technology is currently aimed mainly at being used with mobile phones. There are currently three specific uses for NFC: Card emulation: The NFC device behaves like an existing contactless card. Reader mode: The NFC device is active and reads a passive RFID tag, for example for interactive advertising. P2P mode: Two NFC devices are communicating together and exchanging information. 3

4 TECHNOLOGY OVERVIEW NFC operates in the standard, globally available 13.56MHz frequency band. Possible supported data transfer rates are 106, 212 and 424 kbps and there is potential for higher data rates. The technology has been designed for communications up to a distance of 20 cm, but typically it is used within less than 10 cm. This short range is not a disadvantage, since it aggravates eavesdropping. ESSENTIAL SPECIFICATIONS Like ISO/IEC 14443, NFC communicates via magnetic field induction, where two loop antennas are located within each other s near field, effectively forming an air-core transformer. It operates within the globally available and unlicensed radio frequency ISM band of MHz Most of the RF energy is concentrated in the allowed 14 khz bandwidth range, but the full spectral envelope may be as wide as 1.8 MHz when using the ASK modulation. Working distance with compact standard antennas : up to 20 cm. Supported data rates : 106, 212, 424 or 848 kbps.[6] COMMUNICATION MODES : Active and Passive The NFC interface can operate in two different modes: active and passive. [7][8]. Communication Mode Description Active Two active devices communicate with each other.each device has to generate its own RF field,if it wants to send data. The RF field is alternately generated by one of the two devices. Passive In this mode the communication takes place between an active and a passive device. The passive device has no battery and uses the RF field generated by the active device. 4

5 PRIVACY AND SECURITY Google claims that its new virtual application is in fact safer than using traditional credit cards. Google Wallet requires you to set up a Google Wallet PIN that must be entered before making a purchase. This PIN prevents unauthorized access and payments via Google Wallet. Android phones also feature a separate lock screen. There is also something called PayPal that Mastercard uses providing another layer of security. Your payment card credentials are encrypted and stored on a computer chip on your phone. Although users have a PIN number and are protected by PayPal they should still cancel their cards if they happen to lose their phones.[9]. 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 indicates that much of the data is stored but may not be shared outside Google except under certain circumstances. The Privacy Policy also indicates that transaction details are not "currently" stored by Google, implying that users' transaction details will be stored at some point. 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. [10][11]. While a stolen debit card can be used in some circumstance without a personal identification number (PIN) or signature, the Google Wallet requires a PIN and has additional security:[12][13][14] Google Wallet stores encrypted user information on a computer chip called the Secure Element. The Android device itself can be locked with a personal identification number (PIN). The Google Wallet app requires an additional PIN to activate the antenna of NFC chip. The Google Wallet device must touch or be in close proximity to a MasterCard PayPal reader. Once the transaction is completed, the antenna is turned off. Additional transactions require the PIN to be entered again.[15] Google's view is that if the PIN is stored in the SE component the banks will take full responsibility over the PIN.[16]. 5

6 BUSINESS MODEL Google won't charge users or merchants for access to Wallet, and plans to make money by offering sponsored ads to their users. The new app Google Shopper will push two types of offers to a user's phone: Today's offers: Those allow the user to see a single offer redeemable for discounted goods or services in their area. Nearby offers: Those allow the user to see a list of offers in the 'Eat' and 'Play' categories that nearby businesses have submitted through Google Places. The Google Wallet was designed as an "open" platform. Payment networks, carriers, and banks have been invited to join and participate in the system.[17]. CONCLUSION As we conclude the report on the newly introduced application Google Wallet the outlook looks successful for the most part. According to MasterCard s heart of commerce blog there are over "300,000 PayPal locations around the globe," (2011). That support the function of Google Wallet and with its popularity that number will only increase. In today s America everything revolves around phones and technology. With the few issues that it may have such as the legal and ethical issues, security concerns, social concerns and some minor issues with the merchants, users can feel confident that Google will overcome these obstacles. The potential benefits of this amazing application makes every user hopeful that one day currency will be a thing of the past. Google wallet is one of the best applications in the smartphone scope. Among other uses, it provides an effortless way to transfer money. Google wallet is an innovation that was crafted to capture the interest of all generations. It is a great idea that will help you reduce the risk of carrying a lot of money with you. 6

7 REFERENCES: 1. "Coming soon: make your phone your wallet". Official Google Blog. May 26, Retrieved May 26, Warren, Christina (May 26, 2011). "Google Reveals Mobile Payment System: Google Wallet". Mashable. Retrieved May 26, Hamburger, Ellis (May 26, 2011). "Google Introduces Google Wallet, Works At Over 300,000 MasterCard PayPass Merchant Locations". Silicon Alley Insider. 4. Leavitt, Lydia (September 20, 2011). "Polyamorous Google Wallet adds Visa to its arsenal". Engadget.com. Retrieved September 20, "Technical Specifications". NFC Forum. Retrieved 11 December ISO/IEC 18092(ECMA-340): Information technology Telecommunications and information exchange between systems - Near Field Communication - Interface and Protocol (NFCIP-1). First Edition, Ernst Haselsteiner and Klemens Breitfuss: Security in near field communication (NFC), Philips Semiconductors, Printed handout of Workshop on RFID Security RFIDSec 06, July Patauner, C. "High Speed RFID/NFC at the Frequency of MHz" (PDF).EuraSIP. 9. Schonfeld, Erick (May 26, 2011). "PayPal Lawsuit Against Google Reveals Recruiting Saga And A Deal Gone Sour". TechCrunch. Retrieved May 27, "Google Wallet: Privacy". Google. Retrieved September 20, Harley Geiger, NFC Phones Raise Opportunities, Privacy and Security Issues, Center for Democracy and Technology, April 11, Le, Tony (June 1, 2011). "Google Wallet FAQ". GFan. Retrieved June 4, "Engadget Primed: What is NFC, and why do we care?". Engadget. Retrieved June 22, "Google Wallet: Security". Google. Retrieved June 22, "MasterCard PayPass". MasterCard. Retrieved June 22, "Google Wallet overview Threats and security measures - Cyber Security". cybersecurity.mit.edu. October 9, Retrieved November 29, "Google Unveils Wallet And Offers: An Open Platform For Mobile Payments". TechCrunch. May 26, Retrieved December 9,