Google wallet what is

Well, not literally. A digital wallet is an app on your phone or other mobile device that allows you to store virtual versions of items you would normally find in a physical wallet, like credit cards, bank account information, gift cards, coupons or customer loyalty cards, and even things like event tickets and boarding passes.

The information may be stored either on the device itself or in the cloud, and can be used at bricks-and-mortar locations or online. In theory, it frees you up from having to carry around a host of material items, including money. In practice, it may be a little while before you can entirely forgo your tangible wallet. The Google Wallet concept banks on a couple of spreading technologies, including smartphones and near-field communication NFC.

NFC is a short-range wireless technology that lends your smartphone all sorts of new capabilities. For instance, you can use an NFC-enabled phone to pay for things, from parking meters and pet supplies to sandwiches and much more.

Visit a merchant who's equipped with an NFC checkout system, and with your NFC smartphone you can complete what's called a contactless payment. You don't even need a paper receipt because the store can send an electronic copy directly to your e-mail account. To get started, you download the Google Wallet app to your smartphone or tablet. Only a smattering of Android mobile devices have NFC as of mid, but by , some experts expect about half of smartphones to ship with NFC chips, and Forrester Research foresees more than a quarter of phones in the US having the technology by [sources: Technorati , Mobile Payments Today , Chapman ].

Earn cashback rewards when you activate offers from your favorite businesses and make everyday purchases. Get cashback rewards you can use to pay anyone or any business that accepts Google Pay.

Earn additional cashback on top of your existing credit card rewards or loyalty programs. Get valuable offers from your favorite brands. With privacy and security built into every payment, using Google Pay is safer than swiping your card or paying with cash. Google Pay will never sell your personal information to third parties or share your transaction history with any other Google service for targeting ads.

Google Pay has easy-to-use tools that put you in control so you can choose the privacy settings that are right for you. Google Pay keeps your money and private information safe with built-in authentication, transaction encryption, and fraud protection.

Get started. Say hello to a better relationship with money Google Pay is a safe, simple, and helpful way to pay and manage your money. Scan to get the app. Download for Android Download for iOS.

Pay a friend or a group in a snap. Pay a friend or a group in a snap Send money to a friend or start a group to split expenses for dinner, bills, rent, and more. Private Send and request money in private groups.

Google Wallet also gives merchants the ability to highlight special offers or discounts from their websites or emails directly to the shopper via the app. Customers can also add any gift card balances to their virtual wallets, which helps drive additional sales.

Google Wallet is what is known as a server-side wallet, which means that all of a user's information is stored remotely on Google's system, rather than on the user's device.

Transactions take place between Google's servers and the merchant's existing payment processor. It acts somewhat like a gift card: users place a set amount of money into the wallet they can then spend as desired. As far as the user's bank is concerned, the transaction is identical to any other debit or credit, only the transactions go exclusively through Google rather than the merchant's point of sale. Assuming the merchant's point of sale is configured to accept Google Wallet, transactions work the same as any other accepted payment method.

While support for the mobile app is still sketchy, Google Wallet offers a physical card as well that can be used anyplace that accepts debit MasterCard. How does Google Wallet stack up to other options? Google Wallet's main competitor is Apple, although other companies such as Samsung and PayPal have their own digital payment systems as well Samsung Pay and PayPal Wallet, respectively.

While the products may have a few differences when it comes to the user, they offer similar features from the perspective of an online store owner. Both want to make it as easy as possible to facilitate transactions. The main difference between the two initiatives is the companies behind them.

Google pioneered NFC technology years ago, which allowed users to pay with a mobile device at a point of sale using a secure, short-range signal. However, the technology was not widely adopted at the time, which put Google on the back foot, giving Apple an opening to push their Apple Pay model. Apple, having an established and loyal user base, was able to roll out its system a great deal more effectively, coupling it with specific technology offerings, such as the Apple Watch.

Seeing an opportunity to partner with the high-prestige Apple brand, retailers and banks have been a great deal more eager to adopt the technology now. Google, however, is retooling its wallet to take advantage of their more flexible and open system. Unlike Apple, Google is allowing other developers access to its API in hopes that other companies will create innovative new ways to use the technology. With 80 percent of global market share for the Android platform , payment processors and merchants have good reason to support Google's initiatives.

When compared with other virtual wallets, Google Wallet and Apple Pay stand above most for online transactions.