Google Wallet still lags behind Paypal in terms of brand awareness and use, but smartphone transactions will become the new normal with the younger generation.
In an effort to boost the popularity of its mobile payment system, Google this week announced that it is integrating Google Wallet with Gmail. Customers who’ve linked Google Wallet to their bank account or maintain a balance with Google Wallet can simply click the dollar icon on their Gmail to make a payment.
It’s not the first time Google Wallet introduced new features. Last year, it launched a pilot Google AdWords business credit card for small businesses in the U.K. and flirted with the idea of a Google Wallet card for consumers too.
But there are signs that there is untapped demand for mobile payments. Just one-fifth of young Americans ages 18 to 30 always carry cash, according to a new survey by CouponCodes4U, a discount code website. Nearly half said cash would not be used in the future.
“It’s a generational trend,” says Brent Shelton, a spokesman for deal site FatWallet.com. And some 72% of Gmail users are under the age of 34, according to a survey by Hunch.com, a personalized recommendation site.
“The younger generations are adopting this technology in droves," he said. PayPal and Google Wallet, for example, connect to a bank account or a debit or credit card through a person’s smartphone.
“It’s early days for mobile payments,” says technology analyst Jeff Kagan. “I have children in their early 20s who rarely carry as much as $5 in their wallet.” That’s just enough for tips. “Today, we leave the house with a wallet, car keys and smartphone,” he says. “There will come a time when it will only be our smartphone.”
Google still faces hefty competition. PayPal has an Android and an iPhone app and, on Tuesday, said it would waive fees for the rest of the year for businesses that sign up for its service. Verizon Wireless, one of the country’s major cellphone operators, stopped supporting Google Wallet in 2011. Instead, it’s now part of the rival Isis mobile payment system it launched with AT&T and T-Mobile. Square Wallet, a mobile app for Android and iOS launched by Twitter co-founder Jack Dorsey, last year signed a deal to access some 7,000 Starbucks stores nationwide.
Thus far, PayPal appears to lead. Some 72% of consumers are aware of PayPal, and 48% say they’ve used it, according to a recent survey from ComScore, while only 41% say they’ve heard of Google Wallet, and 8% say they’ve used it.
Since its release in September 2011, Google Wallet has had a bumpy ride. Thousands of merchants are still not set up for mobile payments, making it more difficult for smartphone evangelists to cut up their plastic. What’s more, some consumers are still concerned about security issues of making payments via mobile phone. One U.K. survey found that 44% of people were reluctant to adopt mobile wallets due to fears of phone hacking; only 17% of those surveyed say they would use mobile wallets. (Google did not return requests for comment.)
More from MarketWatch:
- Paypal taking more steps into offline payments
- Execs and their favorite financial apps
- Dear Class of '13: You've been scammed
In the late 1960's we as a country began a shift from a manufacturing economy to a financial services economy. This move was orchestrated by the richest families that own the federal reserve. By outsourcing high paying manufacturing jobs that allowed individuals to save and invest, the elitists found they could subsidize those working in lower paying service sector jobs with credit instruments, thus the birth of the credit card. The bondage of credit allowed the richest to prosper and control society like no time before in the history of our great nation. Now the Federal Reserve has an incredible power to manipulate markets and create asset bubbles like the .com, housing, and now stock market bubbles. They control when they pull the plug and make money on the way up and on the way down and they know that all involved in this epic scheme will escape prosecution and be bailed out by the very people they hold in bondage.
Mobile payments may be easy, but this technology will never teach you how to handle money responsibly. Stick with cash.
Generation Cashless Loses Wealth in Worlds Largest Cyber Attack.
When will people realize that no matter what you store on a computer can be easily stolen by someone. That goes for everything personal information, medical records, money etc. You are never even going to know who stole your money or where they stole it.
It'll be a cold day in hell before I make a payment through a cellphone. It's bad enough in a store, but at least it's tougher to hack into their networks. A wireless cell? That anyone can hack? I don't think so.
Besides, it's nobody's business where my money goes, or who it goes to. If it's a legal transaction, it's still nobody's business [especially any government's] and if it's an "illegal" transaction, well anyone engaging in an illegal transaction who doesn't use cash is an idiot, and if he gets caught, has no one to blame but himself. Besides cash is a lot less easier to track than a credit or debit payment. And I for one, believe in making things HARDER not easier for any government.
Who owns the largest depository of our confidential information?
The Credit Bureaus!
Who is the largest reseller of our most confidential information?
The Credit Bureaus!
Who decides what is sold about you and to whom?
The Credit Bureaus!
How do they get away with this?
Because we let them, and like Identity Theft, it doesn't concern us until it is too late!
As my Mother once said back in early 1990's; "Computers will only cause major problems in the future." I guess in some ways she was right since all businesses(medical/taxes/employer/etc)
store everything electronically and even on laptops that are taken home by employees. I for one am very careful on what I store on my desktop and I never provide personal information online, but we know that does not mean much now-a-days. I for one have received notifications from the County about a possibility of identity theft due to some employee leaving his/her work laptop in the car and being stolen. I must be from the old school as I try to pay for everything with cash, where possible anyway. I also recently met a 30ish man who does not have a bank account. He gets paid by check and then he turns around and signs the check over to his employer and receives cash. Yes, his pay is deducted for taxes. He does not believe in banks. Just like when I was working back in the 1980's. Just my opinion.
How ironic. I just received in 2day's mail a replacement debit/credit card from my bank. My old one "might" have been compromised! Huh?! Thanks for picking up the phone & letting me know!
My Point: If debit/credit cards are STILL being compromised cell phone financial info will be compromised w/out a problem!
The first thing ANYONE tries to get into when they find a phone is that person's financial info on the phone. It's a proven fact.
I'm old school. Cash is fine w/me. I can add & subtract!!!!! If the younger generation's don't have to have this skill it will be forgotten. Third world country here we come! God I'm gad I'm old!
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT SMART SPENDING
LATEST BLOG POSTS
Homeowners associations ban them and environmentalists love them. All that aside, though, a clothesline saves you money.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'