Google developers conference in San Francisco unveiled its pay with a phone system for Android devices. The Android Pay brings together mobile carriers, payment networks, banks and retailers to allow smartphone users to use their phone instead of making card payments.
The new Android pay will be functional in more than 700,000 US retail outlets that accept contactless payments, as reported by company’s official blog post. Google did not announce any launch date for Android Pay but a statement assured, it will be out soon for download on Google Play.
Android Pay is very similar to Apple Pay system as it will allow consumers to store credit card information on their phones along with loyalty cards and other relevant data. As per security concerns, it will generate a one time ‘token’ or virtual account number so that the actual credit card details are not revealed in a transaction. The application will also support fingerprint checking features built into mobile devices, which is similar to Apple’s latest iPhones security feature.
“Users can simply and safely use their Android phone to pay in stores where you see an Android Pay logo,” said Google Vice President, Dave Burke. In February Google had tied up with mobile phone payment firm Softcard to ramp up its efforts in the emerging sector. It will allow the payment system to become a pre-installed app on Android phones.
Apple Pay is available in around 262 Apple Retail stores in the US along with other stores such as Groupon, HotelTonight, Houzz, Staples, Target, Uber and many more, an exact number could not be ascertained.
Apple Pay service also faces certain hardships, such as the major banks and payment processors Visa and MasterCard it aligned itself with, charge for every transaction, typically two to three percent. And the service falls short when it comes to merchant value proposition. It’s almost like a challenge for SMEs to adopt the payment system, as they won’t be able to cut or eliminate that fee.
Hopefully Google Android Pay might have thought well in advance to tackle such issues. Once it’s in practice, only then can it be measured as to how successful the service proves to be.