Google Wallet

Google Wallet

What is Google Wallet?

Google Wallet is a mobile payment system, which uses an embedded NFC (near-field communications) chip, developed by Google. It allows its users to store debit cards, credit cards, loyalty cards, and gift cards among other things, as well as redeeming sales promotions on their mobile phone.

How to make a transaction?

It is easy to make a transaction using Google Wallet. There are some steps that need to be done in order to complete the transaction. First of all, you need to have the Google Wallet app open. Second, you need to have at least one credit card activated. Third, you have to place your phone no further than two inches from a receiver. Finally, your transaction is done successfully.

Security of your Wallet

Google made a point to show how much focus is done on security with this payment method. Rob von Behren said, “Security is very important to us. It was a fundamental consideration from day one.” Here is how the security works: If your smartphone is off or your screen is dark, NFC is disabled. However, if the screen is on, NFC is enabled, but the secure element is off, making it impossible to do a transaction. (Van Camp)

What kinds of devices is Google Wallet available on?

Phones:

•    Samsung Nexus S 4G on Sprint

•    Samsung Galaxy Nexus on Sprint

•    Samsung Galaxy Nexus GSM/HSPA+

•    Samsung Galaxy Victory 4G LTE on Sprint

•    Samsung Galaxy SIII on Sprint, MetroPCS, and US Cellular

•    Samsung Galaxy S4 on Sprint

•    Samsung Galaxy Axiom on US Cellular

•    LG Viper™ 4G LTE on Sprint

•    LG Optimus Elite™ on Sprint and Virgin Mobile

•    LG Nexus 4 GSM/HSPA+ (available for purchase on Google Play)

•    HTC EVO 4G LTE on Sprint

•    HTC One on Sprint

Tablets:

•    Asus Nexus 7 (available for purchase on Google Play)

•    Samsung Nexus 10 (available for purchase on Google Play)

Did you use Google Wallet to make a transaction?

Do you think Google Wallet should be available on so many smartphones?

Feel free to add more information if you have any additional insights about Google Wallet.

Reference:

"How Google Wallet Works." Digital Trends. Jeffrey Van Camp, 20 Sept. 2011. Web. 18 June 2013.

http://www.digitaltrends.com/mobile/how-google-wallet-works/

"Google Wallet." Wikipedia. Wikimedia Foundation, 18 June 2013. Web. 18 June 2013.

http://en.wikipedia.org/wiki/Google_Wallet

Digital "Currencies": Bitcoin

     Digital currencies seem to be trending these days and are attracting a lot of people to the virtual world. They are more precisely described as cryptocurrencies, and the major ones are Bitcoin, Litecoin, and PPcoin. Although these currencies are not actually used in the real world, like for purchasing goods or services, they represent actual money that people had paid to acquire them. In this post, the main focus will be on the Bitcoin currency.
   
     The primary reason why people are using Bitcion these days is because they no longer trust government-issued currencies. Past global events have caused severe financial issues and problems to people all around the world, and have put a lot of countries' government financial status at stake, especially European countries. An example of this is the situation in Cyprus. People are taking their money out of banks because the government has been facing certain fiscal issues and is considering taking a percentage of what people have in their personal accounts to solve them.

"So they buy gold, they put it under the mattress, or they buy bitcoin" stated Tony Gallippi, the CEO of BitPay.com

     These Bitcoins are not issued or run by a government or a even a private company, they are actually run by a computer code that distributes them to people for a certain amount. Therefore, by people's continuous demand for these currencies and their payments to get them, they are keeping the code running.

     In April of this year, U.S. regulators have issued the first guideline for digital currencies; which have put some of people's initial doubts and fears about Bitcoin at rest. It is interesting to see how people are trusting the network more than they are trusting their banks and government. They are storing their money and relying their financial fate on a currency that is absolutely digital (although some might argue that this notion is not completely new or unheard-of because Bitcions act in a similar way to stock markets). It is currently estimated that a single Bitcoin sells for more than $190, and more than $2,000,000,000 dollar's worth of Bitcoin is circulating the internet.



Sources:

"Digital Bitcoin Currency Surpasses 42 National Currencies in Value." Fox News. FOX News Network, 8 Apr. 2013. Web. 18 June 2013. Retrieved from: http://www.foxnews.com/tech/2013/04/08/digital-bitcoin-currency-surpasses-42-national-currencies-in-value/

"Digital Currency." Wikipedia. Wikimedia Foundation, 16 June 2013. Web. 18 June 2013. Retrieved from: http://en.wikipedia.org/wiki/Digital_currency

Advantages of Digital Payments: Debit and Credit Cards

     There are various types of digital payments that people all around the world use, such as online (internet) payments, mobile payments, and several others. Each of those has its own benefits and drawbacks. Here, I will be addressing the advantages of using the most common type of these payments: debit and credit cards.

     Almost everybody I know has at least one type of these cards and is using it as their primary payment method. Debit and credit cards are extremely useful and they provide certain features that makes it easier for us to deal with different sorts of monetary matters. Following, I am going to provide you with the main advantages of using debit and credit cards, and why more and more people are choosing them as their preferred method of payment. 

Main Advantages of Debit Cards

      First of all, there are no interest rates or monthly fees that you have to pay each month or so as part of having a debit card; it is absolutely free to acquire one. Therefore, you will never have to worry about paying debts for using the card "too much" or about any other types of payments to settle.

     Secondly, with debit cards, you can easily control the amount of money available to spend. Whatever the card lets you take out is only what is already in your account. You can't withdraw or spend more than what you have, but at least you'll never go out of control and spend too much (as is the case with some credit card owners...).

     And finally, debit cards are usually protected by a PIN. This is a four digit number that works as a password for your card. Without it, you won't be able to use the card, and this is very convenient because no one else can make use of it if they don't know what the PIN is. However, if the debit card has a Visa, Discover, or MasterCard symbol on it, then in this case, it can be used even without entering a PIN.

Main Advantages of Credit Cards

     The first and most desirable feature of having a credit card is that it gives you power. Credit card users feel satisfaction and confidence because their cards gives them the feeling that they can buy whatever they want. They can make big purchases if their credit limit is pretty high even when they don't have the actual money in their personal accounts.

     A second advantage of having a credit card is that you can make purchases any time you want. You don't have to wait for the end of the week or the month for your salary; because time is not a restriction here. You can buy the items you want on credit and have them right away.

     Finally, a third advantage of credit cards is that the payments you make using the card are not deducted from your personal accounts. Credit cards have separate accounts that work differently than your checking or savings accounts, for example. Therefore, whatever money you spend using a credit card is what you are actually borrowing from the issuer of the card.

• Here is a very interesting news article I encountered that provides statistics on credit cards and credit card owners. 
  
  

Sources:

Woolsey, Ben, and Matt Schulz. "Credit Card Statistics, Industry Facts, Debt Statistics."CreditCardscom News. CreditCards.com, n.d. Web. 12 June 2013. Retrieved from: http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php

Barrymore, John. "How Debit Cards Work." HowStuffWorks. HowStuffWorks, LLC, n.d. Web. 06 June 2013. Retrieved from: http://www.howstuffworks.com/debit-cards.htm

"Credit or Debit: The Choice Is Yours." Debit Card vs Credit Card: Risks and Benefits. Privacy Matters, n.d. Web. 06 June 2013. Retrieved from: http://www.privacymatters.com/credit-information/credit-cards-vs-debit-cards.aspx

Disadvantages of Digital Payments: Debit and Credit Cards

     In a previous post, we pointed out the advantages of using debit and cards cards. Here, we'll be illustrating to you the opposite: the drawbacks of having a debit or a credit card.

Main Disadvantages of Debit Cards

     One of the disadvantages of using a debit card is that, although there are no monthly fees or interest rates, if you withdraw more than what is available in your bank account, you will be charged an overdraft fee. The amount of the fee depends on the bank, however, studies show that the range is usually between $10 to $40.
     A second disadvantage of debit cards is that it is relatively harder to get your money back from the bank once your card is stolen or used by someone else. The protections on debit cards are not as strong as they are on credit cards. Usually banks will take a very long time to process your claim and refund your money than a credit card issuer would. This is mainly because of the high credit limits on credit cards that can reach more than $100,000 for certain credit card users.

     Finally, a third drawback of debit cards is high liability issues. At certain times, if your debit card is stolen and the money is gone, you could be the person legally responsable and liable for all the costs. This causes great tension for people who are using debit cards because it makes them feel that their own bank won't always be on their side. Credit card holders usually feel more secure about this matter because the issuer will refund them in a relatively short time and spare them much of the prolonged security procedures.




Main Disadvantages of Credit Cards

     One of the disadvantages of using a credit card is the applied interest rates on any unpaid credit card bills you have. If you are late on the payment and the amount was not paid by the end of the month, the fee will increase. And one of the important things credit card users should always be careful about is credit card debt. It can accumulate relatively quickly.

     Another disadvantage of credit cards is the process of the investigation on your credit history. These investigations are very thorough and are quite a hassle. If the issuer is suspicious about the person's financial state, the investigation can last for months. Credit card companies lose a lot of money because of fraud, therefore, they always want to detect and minimize the risk of fraud before it actually happens.
     The third drawback of credit cards is that the limit on their account is usually very high. Therefore, people can easily end up spending a lot of money and go over their limit. When next month's bill is due and the person can't pay the amount, fees will increase and this brings us back again to accumulated debt.



Sources:

Bruce, Laura. "FDIC Study: Outrageous Overdraft Fees." FDIC Study: Outrageous Overdraft Fees. Bankrate, Inc., n.d. Web. 12 June 2013. Retrieved from: http://www.bankrate.com/finance/investing/fdic-study-outrageous-overdraft-fees-1.aspx

Sherman, Fraser. "How Do Credit Card Companies Investigate Fraud? | EHow." EHow. Demand Media, 27 May 2011. Web. 12 June 2013. Retrieved from: 

http://www.ehow.com/info_8498724_do-card-companies-investigate-fraud.html

Barrymore, John. "How Debit Cards Work." HowStuffWorks. HowStuffWorks, LLC, n.d. Web. 06 June 2013. Retrieved from: http://www.howstuffworks.com/debit-cards.htm

"Credit or Debit: The Choice Is Yours." Debit Card vs Credit Card: Risks and Benefits. Privacy Matters, n.d. Web. 06 June 2013. Retrieved from:
http://www.privacymatters.com/credit-information/credit-cards-vs-debit-cards.aspx

"Common Problems: Credit Card Debt." Baehr Law Firm. The Baehr Law Firm, PC., n.d. Web. 06 June 2013. Retrieved from: http://www.baehrlaw.com/problems/credit_card_debt.asp

Types of Digital Payments

            Advancement in technology has resulted into a sharp increase in the number of digital payment providers. Currently, various mobile applications have tremendously influenced consumer behavior and has made these digital payments easier to carry out.  Research indicates that contrary to the view that digital payments are a threat to the banking sector, they have, in fact, created myriad opportunities for the traditional banking sector. Digital payments involve any type of cashless payment that doesn’t entail a paper check. Some of the common examples of this kind of payment include: debit cards, credit cards, and internet and mobile phone payments. Payment methods have evolved so fast with the advent of technology. In the present business world, many consumers prefer digital payments as compared to traditional cheques. Despite the fact that a small portion of consumers still believe in and prefer to use cash, there is an increased preference in credit card usage, even for petty payments.

            The world is rapidly transforming into a digital village where more and more consumers are embracing online transactions. Motivated by the invention of smartphones and high broadband speeds, a simple mobile is converted into a great web-accessing gadget that is capable of carrying out millions of transactions online. The customer only needs a simple application that is easy to use and that guarantees them security. Digital payment methods have encouraged expansion within businesses and have also enabled online businesses to go global in the market space. With this type of payment, small scale enterprises would be able to receive payments internationally, even though the customers may be utilizing the payment methods of the native country. It is worth noting that digital payments do not actually alter the payment logic; consumers are given the freedom of making payments from the comfort of their homes.

            In conclusion, we can safely say that digital payment methods ought to be embraced globally. It is easier to carry bulk cash in credit and debit cards compared to notes and coins. Additionally, plastic money has proved to improve security and the speed of transactions. Infact, in some countries, bill payments are strictly done digitally.

           

Refernces:

Pandya, Nilesh. Cashing In – How banks can use the digital payment evolution. Skrill, 2013.         Retrieved from http://corporate.skrill.com/2013/01/57739/57739/ on May 31, 2013.

Stamford. Gartner Says Digital Payment Advisors Will Transform the Payment Landscape.           Gartner, 2013. Retrieved from http://www.gartner.com/newsroom/id/2498615

The Full Image of Digital Payments

            No one doubts that the usage of digital payments has been spreading out during these recent years. A lot of countries are starting to use the electronic (digital) payment system because it offers the desired security and convenience for both the seller and the buyer. First of all, it offers convenience because the old traditional payment systems either require the consumers to personally write the paper checks and send them via e-mail or they require them to be physically available in order to make payments (howstuffworks.com). Secondly, it offers security because the users of digital payments have to abide by strict confidential and personal information rules, which by breaking them, one could face serious consequences (howstuffworks.com). Digital payments are financially authorized online, and they are an exchange between the seller and buyer.

Digital payments can be defined in several ways. Electronic (digital) payments are non-cash payment that doesn't involve paper checks. Credit cards, debit cards, Visa cards, and other advanced technological ways of payment have been used a lot by people in different countries. Researchers and studies show that 84% of the overall student population are using credit cards (Mae, Sallie). Therefore, we can illustrate that the usage of digital payments does make our financial life easier and much more convenient than before.

From my experience, I found that using these new digital payments saved me more time, effort, and money. In the business field, it lowers the cost for businesses and traders, the more they spend electronically, the less they spend on paper and postage. Moreover, digital payments are very useful for people who have a fast-paced life because once you enter your account information, such as the credit card number and billing address, it will be stored in the database of the website and can be retrieved automatically. Therefore, the next time you log in again to purchase something, all you have to do is remember your username and password or use the auto-fill feature (if the site permits so). Finally, the usage of digital payments is infinite; it can be applied almost everywhere.

References:

Hord, Jennifer. "How Electronic Payment Works." HowStuffWorks. N.p., n.d. Web. 03 June 2013.

http://money.howstuffworks.com/personal-finance/online-banking/electronic-payment1.htm

"Electronic Payment Systems." N.p., n.d. Web.

http://webserver.ignou.ac.in/virtualcampus/adit/course/cst304/ecom2.htm

Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009

A video emphasizing that the process of digital payments is easier and saves a lot of effort and time compared to the old traditional methods of payment.

http://www.youtube.com/watch?v=sEYQAseVYJM