Google to Announce Mobile Credit Cards on New Phones

Google’s next move is to turn your phone into a credit card. “Google Expected to Introduce a Wireless Payment System” by Tara Siegel Bernard and Claire Cain Miller reports Google should be introducing the “mobile payment” service tomorrow. Google will be teaming with MasterCard and Citibank to make the credit card phones usable at PayPass terminals.  Macy’s, American Eagle Outfitters and Subway are also joining the venture.

The article reports many companies have been working on mobile credit card services for years but lack of consensus amongst those involved seems to prevent introduction. Newer models of Android phones and the Nexus S will include the near-field communication chip, which allows phones to be scanned and credit card information to be digitally read.  None of the companies involved in the deal have commented and Google has not made public acknowledgement of it.

Personally, I am not attracted to having a credit card connected with my phone. Lately, security breaches have reminded consumers that the more integrated our information becomes with advanced technology the more crucial security is. If Google is smart, they should already have security answers lined up and an ironclad security feature with the new phones that will have the chip. Also, it will take time for this to adapt and expand; the article reports, “only merchants in San Francisco and New York will participate”. With so many companies that would have to participate in order for expansion, it will take time to overhaul the retail system.