Google CEO Says NFC, Mobile Payments Will Prove Profitable

Speaking in Barcelona, Spain at the Mobile World Congress, Google’s chief executive officer Eric Schmidt took the opportunity to expound on the future of mobile payments and Near Field Communication (NFC) technology, both of which, Schmidt says, are bracing to take the mobile world as we know it by storm. According to Google’s chief, wireless …   Read More

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Speaking in Barcelona, Spain at the Mobile World Congress, Google’s chief executive officer Eric Schmidt took the opportunity to expound on the future of mobile payments and Near Field Communication (NFC) technology, both of which, Schmidt says, are bracing to take the mobile world as we know it by storm.

According to Google’s chief, wireless transactions are potentially so bankable that a fleet of new Android smartphones will be outfitted with near-field communication technology, a reality that, according to the New York Times, “could turn into a serious business for the company.”

Following his presentation at the Mobile World Congress, Schmidt informed a small gathering of reporters that Google could work with advertisers to “extend offers to phones with NFC chips.” By Schmidt’s estimation, advertisers are largely chomping at the bit to “combine an ad and an offer, presumably at the point of sale.”

Google has set its sights on neighborhood mom-and-pop shops, where it sees a largely untapped group of business customers and advertisers.

According to the NYT report, Google continues to grapple with a number of challenges that accompany deploying new technologies like NFC. Google hopes, for example, to avoid spending large quantities of cash and ample amounts of time training an army of local salespeople who would gain insight into consumer spending habits in designated markets.

“NFC has been around for a long time but everything has just started to come together,” said Schmidt, who remains confident that Google will successfully leverage the opportunities born of NFC despite current obstacles.

“My phone remembers I need new pants,” says Schmidt, “and it knows ahead of me are two stores–one offering the product at a 20 percent discount, the other offering a 30 percent discount. I enter the store with the bigger discount, the pants are ready, and out I go. You don’t think this is going to work? It should revolutionize electronic commerce and payments. We’re seeing that models around consumerism are working when they’re tied to location and advertising.”

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6 comments

  1. Bob Smith

    Jozsef,

    GPS triangulates your location so that presumably an application can find the best deal for the pants. You initiate the transaction via 3G, 4G or WiFi and when you are 5-15 CM away from NFC enabled cash register/reader, as you correctly stated, NFC makes the financial transaction possible without you having a wallet or a credit card in the pants you are wearing into the store.

    Do you get the point?

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  3. Jozsef

    “My phone remembers I need new pants,” says Schmidt, “and it knows ahead of me are two stores–one offering the product at a 20 percent discount, the other offering a 30 percent discount. I enter the store with the bigger discount, the pants are ready, and out I go. …"

    What does it have to do with NFC? "N" stands for "Near" and this way of communication is designed to work in a distance of 5-15 cm max. This prevents accidental communication between the NFC chip and the reader (hence it can be used for mobile payment). So my phone won't know what shops are ahead of me because of the NFC chip. It will rather use GPS or triangulation to determine my location… Am I missing the point here?

  4. Lee

    Eric Schmidt's remark that Google could work with advertisers in the near future to “extend offers to phones with NFC chips" is no surprise, in fact Google has always looked to venture into most potential fields in the business. Besides, Schmidt’s estimation, that "advertisers today are largely chomping at the bit to combine an ad and an offer, presumably at the point of sale” seems to be apt. mCommerce is changing the face of global business transactions. Hence its no surprise that a cyber giant like Google would always be one step ahead. Its time for business owners and retailers to understand the working of mCommerce in the modern business scenario. If you are looking for a well researched report on mCommerce, here is a golden opportunity. You can find all information about mCommerce in one single well-researched whitepaper. Whats even more? Its Free! Just click this link for the free report. http://www.cart2mobile.com/free-report/

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