Google Wallet

In today’s world, many people are looking for alternative ways to be efficient in almost everything they do.  For the people who are looking to make the most out of what they have to carry in their pocket on a regular basis, I would like to tell you about Google Wallet.  Google Wallet is an online payment system that allows its users to store debit cards, credit cards, loyalty cards, and gift cards (among other items) on their mobile phone.  Google Wallet uses near field communication to make fast, convenient, and most importantly secure payments by simply tapping the phone on any PayPass-enabled terminal upon checkout. 

                Google Wallet’s launch partners included Citi Bank as the issuing bank, Master Card as the original payment supported, and Sprint as the first mobile carrier.  Since launching in 2011, Google Wallet has expanded its partnerships and now supports all major credit and debit cards, including Visa, Master Card, Discover, and American Express.  A great variety of merchants accept google wallet, from the restaurant industry, to clothing retail, to pharmaceuticals. 

            Google Wallet is an entirely free service for both consumers and merchants.  This seems a bit outrageous, but Google plans to make money by creating sponsored ads on the site. 

            When dealing with people’s money, security has to be a top priority.  While a stolen debit card can sometimes be used without a PIN number, Google Wallet uses three different security measures to ensure the security of the customer’s funds.  The Android Operating System, within the core libraries require the screen of the device must be on to enable NFC chipset access, meaning that if someone does not have the pass code to your phone, it will be difficult for them to access.  The second is the sensitive financial credential data that is stored in the protected memory.  Finally, the Google Wallet application requires the input of the correct PIN to open the application. 

            In conclusion, I think that the innovation of Google Wallet will definitely help to minimize the things that people have to carry around, which may not seem like a big deal, but some consumers will rave about it.  I also think that the great deal of security provided with this application will ultimately lead to people replacing their credit cards with Google Wallet.

EBay and Paypal

If you have ever been on the internet, chances are you have either bought something from eBay or at least heard of eBay. EBay is one of the biggest online marketplaces today, with Amazon being their only real competitor. Since 2002, eBay has owned PayPal, which is the most used online payment system in the world. After almost thirteen years, eBay recently announced they are splitting off from PayPal.

EBay’s Chief Executive Officer, John Donahoe, says that the separation actually gives both companies an advantage in their specific markets. EBay’s annual revenue is $9.9 billion with a growth of 10 percent every year. On the other hand, PayPal’s revenues are $7.2 billion, but they are growing 19 percent every year. PayPal’s revenues are growing almost twice as fast as eBay’s! Donahoe says that keeping both companies together will hold the companies from their full potential and reduce the other’s revenue growth.

The separation will be more beneficial for PayPal than it will for eBay. PayPal is the current online payment source for over 200 markets worldwide and is expected to process over one billion mobile payments this year! In order for PayPal to expand and fill the orders of the worldwide marketplaces, the companies had to separate. Also with Apple coming out with Apple Pay (a new online payment system), the best way for PayPal to compete was for the separation to happen. EMarketer said that in the US alone, mobile payments will reach to 3.5 billion in 2014. That amount is supposed to increase exceedingly to 118 billion by 2018!

This is a big step for both companies! They believe this choice will give them the advantage in the online market world. Do you think this is a good strategy? Do you think both companies will prosper or do you think one or both will decline from the separation? How do you think the online community will respond to this news?​