Google has been consistently coming out with a lot of new products that have met with a lot of success. One of the most ambitious Google projects to be unveiled to the public is Google Wallet, which could be considered a highly effective payment platform using smartphones. So how does Google Wallet work?

Google Wallet uses an embedded near-field communications or NFC chip that allows users to use their credit cards, debit cards, coupons, store loyalty cards and other payment or discount products without having to physically use the card. With the use of the NFC chip, all the user needs to do is to use their smartphone and tap it onto a payment receiver to initiate and complete the transaction. Bigtime brands like Visa, MasterCard, Discover and American Express have already thrown their support for Google Wallet and will become part of the whole Google Wallet system.

In order to use Google Wallet there are some things you need to do first. The most crucial step would be to get an Android phone that is NFC compatible. Install the Google Wallet app and then start activating your credit card. Activating the credit card is fairly straightforward, you just need to enter the account details – the account number, the card type and your personal information. The information is verified both with the issuing credit card company and with FirstData. After activating the card through email, you can now use Google Wallet for your transactions. Google has also implemented an option where the user can spend up to $100 without having to enter an activation code.

A prepaid card is also included with every Google Wallet. This card acts like a debit card that can be loaded with a cash amount either through a credit card or a bank account. This is a very thoughtful move for Google as it addresses the concerns of some potential users who are still wary about making online purchases or transactions.

The transactions using Google Wallet is equally easy. The user only needs to open the Google Wallet app, activate at least one credit card and then put the phone near the receiver – it’s amazingly easy.

With a payment platform like Google Wallet, the primary concern is obviously security, and Google has assured that public that security has been the top concern from the very first day the product was conceptualized. Among the security features built into Google Wallet is the ability to lock the wallet and deactivate the cards. But aside from these obvious security features, a mix of hardware and software security measures has also been implemented. For example, Google Wallet meets PayPass standards. Also, when the phone has been turned off or if the screen is dark, the NFC is automatically disabled. Additionally, if the screen is on and NFC is enabled, but the secure element has been turned off, no transaction will push through. Transactions will only happen if the Google Wallet app is open and a four digit PIN has been entered.

Google Wallet can change the way transactions are done on an everyday basis. Traction among the public is what will determine if this new Google product will be a runaway success or a failure.

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