Mobile Payments – Key Lies in Identity

Although speculation at this point I believe that the reason Google has invested in NFC  for payments is specifically because they have a chance to the Identity providers for merchants in a mobile transaction.

Google will soon have the ability to specifically determine the location and contextual information of any user of its Android ecosystem. I am pretty sure the the amount of information google crawls about me : browsing history, location data, search data , photos, videos , they can build a profile about me.

While I am not a banking and finance expert, i believe that the future of mCash, or any mobile transaction leveraging NFC is dependent on the confirmation of the identity. Middle men such as Visa and Mastercard have built an multi billion dollar industry riding on the need for such identity management.

Merchant trusts Visa , as he is absolved of the need for validating the identity of the user transacting with him. In case of the card or plastic money holder , the onus of security of his/her identify has been left to the holder.

Enter providers such as Google, who have a key role in being the transaction channel and also the identity management channel for mobile payments.

In a futuristic scenario of a shopper enabled with a NFC device, Google has a central role in confirming the identity of the the device holder.

When the shopper uses his NFC wallet, Google can then provide the location information , verify the nature of the transaction { if the user purchases something out of the ordinary, google can send an alert via SMS } , broker the transaction between the merchant and the user by providing identity data to the merchant.

Thus at one go, the shopper has confirmation that he/she was present at the merchant location, provided confirmation of the transaction and feel absolved of the need for partnering with a Visa/Mastercard for enabling him to carry plastic money.

The transaction is now simplified by ensuring payment confirmation goes from Merchant to bank for Credit and user to Bank for debit. All the while google enjoys tracking transactions across billions of transactions by millions of users.

So I am not disappointed that google has spent research on NFC enabled mWallets or eWallets what ever one may want to call em.


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1 Response to Mobile Payments – Key Lies in Identity

  1. …and with plenty of data they will customize/personalize to miniature level for consumers.

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