updated 11:55 am EDT, Thu May 26, 2011
We cover Google's mobile wallet event in NYC
Google is holding an event in New York City where it's expected to unveil an NFC-based mobile payment system. The service should involve at least Android phones from Sprint, an infrastructure from VeriFone, as well as several major stores. Check in for live coverage at 12PM Eastern.
1:02PM: Main presentation ends.
12:57PM: Tilenius wraps up. Thanking all the partners, rolling a video to show their perspectives, including retail.
12:56PM: Talking to HTC, Samsung, the Motorolas of the world for NFC. Aligns well with our strategic initiatives. Very excited, want to thank the Google team.
12:54PM: Fared Adib, CTO for Sprint up. The device in the demos is the Nexus S 4G. Recaps Google collaborations and notes the Google Voice integration. Open is a way of life for us. Really about democracy: carrier should not dictate your experience on your phone.
12:52PM: Handles processing and over 1 billion prepaid cards. Talk to banks. Ideally, everything would migrate into the Google Wallet one day. Over 700 million cards in First Data's system. Today, they're all plastic. Working to process them in the trusted services manager.
12:49PM: MasterCard up; sees itself as the heart of commerce. Showing the PayPass scale; over 100,000 in the US. Once people learn to tap to pay, they never go back.
First Data up: What an incredible day. In 1989 you couldn't use your credit card in a grocery store. In 1983 you couldn't use electronic payment to pay at a pump. Now, you won't stop if you can't pay electronically. Was ridiculous to pay electronically.
12:44PM: Starting today, you can not just find something with your smartphone but pay for it. That's progress. Just at the starting point. In time, there will be numerous systems. No doubt that today's announcement is the inflection point.
12:41PM: Citi up. Proud to be the first bank leading NFC payments in the US. Great to be up with the partners. Leaving you with three key messages. Strategic importance to the banking industry of mobile money and mobile payments. Supports Citi's position as the global leader, he claims. Want to be the "world's digital bank." Commitment as a bank to responsible finance.
Examples: text banking, a digital bank opened in December in Union Square in NYC.
12:38PM: Open is part of who we are. Android has 100 million phones in the market, over 400,000 a day. Open in Apps, App Engine. Plan to aggressively support it. Wallet is free to partners, level the playing field. Even small businesses can use it. Offers and loyalty programs go directly into the wallet. API for banks and retailers. Work with retailers to promote open standards. Samsung, Sprint, NXP hardware partners. Walgreens, others part of the retail launch.
12:35PM: Talking about loyalty reward programs; right now it's discounts, but it could include game elements in the future [read: Foursquare-like strategy]. Bedier shows a poster ad with an NFC tag on it. Go up to it with the phone and it transfers the coupon to the wallet.
A real service. Just the beginning of what they plan to do. Running a promo video now. "Goodbye, wallet."
12:30PM: Buying at a mock VeriFone terminal at AEO; pass at the NFC system and the product, the offer, and the credit card info all go over to the store terminal. Just need to sign to complete the deal.
12:27PM: NXP PN65 chip is the same security chip you'd find in a passport reader. Lots of security, where we're storing the credit card info. Over-the-air provisioning mentioned earlier makes sure that there's an identifier unique only to the bank and to the system. The system is only unlocked when the user unlocks the wallet.
Bedier back up. Shopping for denim shorts for his daughter; he sees a Google Offer for it at American Eagle Outfitters. Adds it to his Google Wallet on the desktop and it immediately shows up on the phone. Can search for nearby offers and add those too.
12:22PM: Two cards to start, more coming soon. Can also be used without having the app open. Set preferences for which cards are active in the background. Security was very important to us; bringing up Rob to talk about the "secret sauce" for securing the app.
12:19PM: Osama Bedier up for a live demo. This is a real service, not just an announcement. Starting with a fresh phone [Nexus S]. You get a tour first. Have to attach the app to a Google account first; you provision a card. Bedier uses his own phone for the live data.
Information is verified against the user and sent to a trusted services manager. Uniquely qualified to communicate through secure keys to talk to that phone. As soon as it's done (in seconds), it's provisioned over the air in seconds.
12:14PM: Starting a field test of Google Wallet today with service in the summer. Using NFC; many devices will support it in the near future. Supports your existing credit cards as well as a Google prepaid card. You can lock the card down. The phone screen lock, a required Google PIN, encrypted data, and the number is never fully displayed.
Works with MasterCard's PayPass. Starting with San Francisco and New York, will work to other cities in the coming months. Toys R Us and other retailers in the future. First release is for payments, loyalty offers and discounts.
Offers will be delivered as a daily e-mail. Save it to your account and then just use it. Portland, San Francisco, and New York this summer. Plan to work across our properties.
12:10PM: Working together, we're going to transform the experience.
Tilenius back up. It's all going to merge. Joining with Citi, MasterCard, First Data, and Sprint. It's mobile, local, personalized, serendipitous, and open. MOLO (mobile, open, local commerce).
Example: shop at the grocery store, find out there's a coupon for something in the store in aisle 8. Take advantage of it, swipe to pay, and go. Offers can be given to users with their permissions. Incentives depending on shopping levels; a much stronger relationship. Investing in technologies to improve people's lives.
12:05PM: MasterCard up: payment methods haven't changed much. Expect transactions to grow to $630 billion by 2014. Google enabled phone can work with MasterCard's PayPass system anywhere in the world. Over half the phones next year will be smartphones.
12:02PM: Recapping progress so far; offline brands coming online (Gilt, Groupon, etc.). In 1998, 70% wouldn't use the Internet for online transactions. ComScore had that at 70% who would use credit cards in 2009. E-commerce is still 8% of retail, the rest is in store.
12:00PM: Stephanie Tilenius up. Talking about mobile and local commerce. If you remember nothing else, we're starting Google Wallet and Google Offers. Open platform. Creating tomorrow's next, best shopping experience. Bringing together all the pieces of the ecosystem [Wallet and Offers]. Your phone will be the wallet.