- Google Mobile Payment Systems
As discussed on a previous blog entry, mobile payment is already a reality in the US thanks to the coffee house leader Starbucks. By using a technology called near-field-communication (NFC) and with the assistance of a special ship, cell phones are now capable of storing coupons, store loyalty information and more importantly credit card information that can be transmitted to a register with a simple tap. In fact, the technology seems to be so promising that last week several news sources reported that the world’s largest internet search company, Google, will soon become a new entrant in the industry. Google is said to announce plans to start a pilot program in New York and San Francisco that will allow retailers to accept payments through smart phones by using the new Google Mobile Payment System, which aims to make mobile payment a mainstream method of payment in the US. But while mobile payment systems could definitely make our life easier it also has a lot of potential to increase issues related to identity theft and privacy. Before adopting the technology I assume many consumers could have the same questions I have: Can I accidentally swipe my phone? What if someone hacks into my phone and obtains my bank account? How much information will I be sharing? What happens if I lose my phone?
While there are no readily available statistics indicating how many people lose their phones each year, a Yankee Group survey of 2,900 households with wireless phones last September found that 19 percent had bought cell phones in the last year to replace ones they had. And as we know Google has been scrutinized in different occasions about its privacy policies regarding many of its services such as Google Maps, Google Earth and Google Groups. Also, it is not clear yet how banks will respond to complaints about unauthorized charges made with stolen phones. As of today, most of them offer a zero liability on unauthorized purchases but how will they address this new technology? I guess until these questions are answered I will be reluctant to become an early adapter. How about the rest of you?
- Facebook Search Protocol
A couple of years ago Facebook was a social media site that could be used to share information with a select small community of your own choosing. High school friends, family members, relatives, neighbors, work colleagues and many other of your friends were the typical set of people who could have access to the information posted by you. But today, the company is just so much more than that. Just recently they received the patent to a Search Engine that combines “any type of search engine results with the popularity of each result among members of a user’s social network.” In other words, your network of friends will help you decide what things to buy, what events to attend and any other decision you are faced with while searching the web.
But let’s not forget that just in October 2010 a Wall Street Journal investigation found that many of the most popular applications on Facebook have been transmitting information such as peoples’ name and in some cases even their friends’ names to dozens of advertisers and online tracking companies, allowing corporations to track your web activity without your knowledge. Would that be the case with this new search engine? I know the technology sounds great and that many people will use it, because of its convenience, but what price are we willing to pay in the name of technology? Aren’t we giving away our privacy to companies we do not even know?
For decades the American consumer has fought for the right of privacy and to keep away corporations and even the government from our daily activities, but it seems like we are willing to grant all those right in an electronic world. Again, as in the case of Google Payment System I find myself reluctant to use this technology mainly because I do not trust the privacy settings of these companies and because I do not believe they are concerned with creating a safe electronic world.
Norberto Munoz.
References:
· Losing a Cell Phone: A Pain Even Insurance Can't End
· Swiping Is the Easy Part
http://www.nytimes.com/2011/03/24/technology/24wallet.html?_r=1&ref=googleinc
· Google Is Said to Test Mobile-Payment System With VeriFone
- Facebook further reduces your control over personal information
I think it's kind of cool how both your updates are intertwined in a way, think about it. You said that you "will be reluctant to become an early adapter" to Google Mobile Payment System but I am sure that with a big enough Facebook Network of friends, some of them will try Google's take on Mobile Payment early on and you will then be able to see how they feel about it and how reliable it is in their opinion with a simple search.
ReplyDelete:)
I don't think is question of whether or not is safe for the world to allow companies to enter into our lives in such a "technological" way. It's a question of how far we should let it go.
ReplyDeleteIn a previous comment to another post, I mentioned that we are living the future and the crazy thing is that we didn't even see it. We are still reluctant to new technologies and changes that were unheard of 20 years ago but 20 years from now will be obsolete. Think about when we started using online retailing... who would dare giving their home address, credit card information, etc. Now we get mad at a store if they don't offer on-line shopping options.
About Facebook.... mehhh it's bound to happen. Every single click in our profile is optional, and the whole purpose of the site is to NETwork. If we don't want our information shared with third parties and thousand other places. SIMPLE! don't have a profile.
This whole thing with mobile payments seems to be taking off in every aspect possible. This leaves a lot of questions like "Is this safe?", "Is my information safe?" or "How can I make sure this is only used when I want it to be used?". So many questions so little time. Some positives, no need to carry your wallet all the time, if gives you an alternative to cash. Negatives? Well what if you lose your wallet? How safe will your information be. Also how about fees? Any hidden fees? I know Googles says that they will not get any payments of any possible fees but will it be worth it in the long run?
ReplyDeleteGreat blog. Really covers the issue a lot. I think this trend of paying with our cellphones would take some time to grow into people. As other bloggers commented there is still the issue about the security of this method. Moreover, there are some people who do not have smart phones yet. They would never adapt to this method of payment until they change their equipment. Nonetheless, it is clear that everybody is shifting their ways of paying, their ways of entertaining themselves and their ways of communicating. It is up to successful companies to follow these new trends and capitalize the business opportunities.
ReplyDeleteFirst of all I want to thank you for sharing some very important information. I agree with you in that this new trend of payment might take some time to grow into people, for me personally I don't think is appropriate. The reason for this,it is mainly because when it comes to technology you can never be protected enough. There is always something that is created to cheat the system and well regarding this issue it could cause a lot of problems for a lot of people.
ReplyDeleteNow regarding Facebook's new patent, I think that it is amazing how everything time you think that there is nothing else they can come up with, they surprise you. this new patent is the door for a new world of opportunities to market products and services and we as marketers should start thinking of ways take advantage of it.
Regarding electronic payment processing, NFC, or web-based payment processing (www.squareup.com or www.paypal.com), if you have ever used any of the above, guess what, you're already an early adopter. The means of making payments does not in any way further expose one's privacy. In fact, with the proper magnetic strip reader, your debit card's ARCHAIC magnetic strip can provide your name, address, telephone number, and PIN as it is reflected on your banks system.
ReplyDeleteIn terms of Facebook search, I believe that some, in fact, many will opt in and some will opt out of using their search engine. I for one do not use Bing. If someone buys NewBalance sneakers because they're my friend on FB and FB determine's that I can influence their buying decision, that would be that user's call.