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Up Close with Google Wallet

Here's a walk-through of how Google's Mobile Ecommerce system and offers will work.

Up Close with Google Wallet
Up Close with Google Wallet

When Google Wallet launches later this year, it will instantly compete with PayPal, Square, other credit card companies' mobile plans, and possibly even Apple. Plus, Google will have to convince all those Android partners to release NFC-enabled phones on multiple carriers. It could be a steep climb.

That said, Google's mobile commerce ecosystem is nothing if not comprehensive. The company walked us through the process, which runs the gamut from redeeming gift cards and collecting loyalty points to rewards and, of course, buying lots of stuff with no more than a tap of your phone on a special Point of Sale (POS) system. One Google exec demonstrated buying a pair of denim shorts for his daughter using the system. The first tap of the phone didn't seem to work, but the next one did, and soon he had half of a new outfit for his child—whether or not he wanted it.

Google launches Wallet and Offers this week in just a couple of cities, but they do have MasterCard PayPass support in over 100,000 retailers across the county. The company wants to use this test period to gauge how well the process works, and address questions like, what happens when your smartphone runs out of juice and you can't buy anything?

Hard to say whether or not this marks the beginning of the end for plastic. How many people, for instance, are ready to walk around without even a single credit card? Still, the smartphone is quickly becoming the most ubiquitous device we own. What could be more natural than using it to buy, say, your next smartphone?

1. Google Wallet Works with a Tap

Google Wallet Works with a Tap
Google's Google Wallet ecommerce system works with an NFC-enabled phone and a tap-and-go MasterCard PayPass reader. It'll offer credit card payments, rewards, loyalty programs and offers.

2. Google Wallet: How it Works

Google Wallet: How it Works
This simple graphic gives a pretty clear picture of how Google Wallet works and the path of your payment data. Note the position of First Data.

3. Google Wallet: Any Citi MasterCard

Google Wallet: Any Citi MasterCard
This screen shows a live American Advantage Citibank/MasterCard credit card on the phone. Now it can be used for payments.

4. Google Wallet: Google Card

Google Wallet: Google Card
Yes, as part of Google Wallet, Google is, essentially, introducing its own credit card that you can fill up with funds from other credit cards and then use for touch-and-go payments.

5. Google Wallet: Nothing without Money

Google Wallet: Nothing without Money
You have to add funds to the Google Card to use it. Here's how it's done.

6. Google Wallet: Add Cards

Google Wallet: Add Cards
You can add gift card redemptions to Google Wallet.

7. Google Wallet: Security

Google Wallet: Security
Google pairs its NFC chip with a special smart card reader chip that encrypts the data.

8. Google Wallet: Coupons

Google Wallet: Coupons
If you have a Google Wallet and get an offer from a participating merchant, you can add the deals to your Google Wallet—which means it's now on your phone.

9. Google Wallet: Offers

Google Wallet: Offers
Google just squeezed itself into the local offers market. Here's how your saved deals will look on your NFC-enabled phone.

10. Google Wallet: The More They Know

Google Wallet: The More They Know
If you opt into letting Google watch where you are and some details on what you buy, you may get better local deals like these.

11. Google Wallet: Saved Offers

Google Wallet: Saved Offers
Among Google's Wallet partners is Subway. A $3 flatbread breakfast sounds pretty good right now.

12. Google Wallet: Rewards

Google Wallet: Rewards
Got a rewards card from a local merchant? You may be able to store and use right off your phone.

13. Google Wallet: Main Interface

Google Wallet: Main Interface
Here's what your Google Wallet home interface will look like. Offers are delivered every day.

14. Google Wallet: Where You Pay

Google Wallet: Where You Pay
This touch-and-go point of sale system is from American Eagle, another Google Wallet partner.

15. Google Wallet: Pay Them

Google Wallet: Pay Them
American Eagle gets paid through Google Wallet.

16. Google Wallet: Ecosystem

Google Wallet: Ecosystem
An overview of how Google Wallet works financially, on the mobile platform and through retail. It all seems so simple when explained like this.

17. Google Wallet: Nexus S 4G

Google Wallet: Nexus S 4G
Here it is: the only phone that currently works with Google Wallet. It has both the NFC and the Smart Card Reader chip.

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A 25-year industry veteran and award-winning journalist, Lance Ulanoff is the former Editor in Chief of PCMag.com. Lance Ulanoff has covered technology since PCs were the size of suitcases, "on line" meant "waiting" and CPU speeds were measured in single-digit megahertz. He's traveled the globe to report on a vast array of consumer and business technology. While a digital veteran, Lance spent his early years writing for newspapers and magazines. He's been online since 1996 and ran Web sites for three national publications: HomePC, Windows Magazine and PC Magazine. A graduate of Hofstra University, Lance has history with the PCMag brand that spans nearly two decades, having worked there in the early 90s and returning in 2000 to relaunch PCMag.com. In 2007 he was named Editor-in-Chief. During his tenure, Lance guided the brand to a 100% digital existence. In his capacity as Senior Vice President, Content, for Ziff Davis, Inc., Lance oversees content strategy for all of Ziff Davis' Web sites. His long-running column on PCMag.com has earned him a Bronze award from the ASBPE. Winmag.com, HomePC.com and PCMag.com have all been honored under Lance's guidance. Lance served host of PCMag's weekly podcast, PCMag Radio and makes frequent appearances on national, international, and local news programs including Fox News, the Today Show, Good Morning America, CNBC, CNN, Bloomberg TV, NY1, CNN HLN, BBC, New York's Eyewitness News, News Channel 4, and WCBS. He has also offered commentary on National Public Radio and been interviewed by newspapers and radio stations around the country. Lance has been an invited guest speaker at numerous technology conferences including Think Mobile, CEA Line Shows, Digital Life, RoboBusiness, RoboNexus, Business Foresight and Digital Media Wire's Games and Mobile Forum. Lance also posts to Twitter all day long. You can follow his tech industry activities and thoughts at http://twitter.com/LanceUlanoff

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