Google Wallet, the changes to the way we pay

Security
According to Google's Freed-Finnegan, you get five chances to enter the correct four-digit PIN. If that fails, he said, the phone's secure element is wiped clean. According to Money Network's support staff, however, mistyping the PIN five times will generate an error message and an offer to email you a new PIN. If accepted, instructions to create a new four-digit PIN will then be emailed to you, using your Google email address associated with the card.

If you lose your phone, you'll need to contact your carrier (Sprint). Don't worry, though: if a thief steals your phone and immediately mistypes the PIN five times to receive an updated PIN, the thief will still need to know your name, address, Social Security number, and other identifying information to set up a new PIN. Incorrectly identifying one of those fields will force the thief (or you) to fax over proof of identity, according to Money Network.

Topping up the card also comes with its own hurdles. Google forces you to manually enter all of the card information each time you want to top up your prepaid card. Consider this a security feature rather than an annoyance; in the off chance you lose your phone, wouldn't you want the thief to have to enter his own card information, rather than use yours? After the card is approved, however, you can manually enter the amount that you'd like to add to your card.

The transfer was accounted for by my credit-card provider as a purchase, not as a cash advance, and charged to Money Network LLC. It's also worth reiterating that the Google prepaid card is a Mastercard, owned by Metabank, with all the fraud protections that Mastercard offers.
Once you have funds loaded onto the Wallet, you're ready to begin using it. But where?

Google Wallet: I'm loving it?
Google preloaded my Nexus S with a Mastercard PayPass Locator app, which allows you to search for restaurants, shops, and other locations near you, or a given location, with PayPass (and, by default, Google Wallet) enabled. At this point, you have few choices.

If you like junk food, however, you're in hog heaven. If you open the app and look for places to eat (the burger and shake icon) chances are that it will be either McDonalds, 7-Eleven, or Jack in the Box. Other PayPass-equipped stores include CVS, Rite-Aid, Walgreens, Duane Reade, Peet's Coffee, the Home Depot, Foot Locker, Office Depot and Best Buy. Sure, you'll also find a few local businesses that use Google Wallet, but they're few and far between. One downer: in tech-friendly San Francisco, south of Mission St. is a virtual wasteland where Google Wallet is concerned. South of Market isn't much better. Two exceptions: AT&T Park and Whole Foods, a pair of pricey venues where you might end up topping up your Wallet before you even leave the store. New York fared better, with numerous chain stores using the technology, and New York taxicabs.

Chin up, though - the app isn't perfect, and new locations are being added every day. You may also run into a merchant that for some reason has been left off of the app - one McDonalds in my town wasn't listed, and its payment terminal didn't have the Mastercard logo. But the phone reported that the payment had been sent, and a receipt confirmed it.

Promises unmet, as yet
"Your phone will be your wallet. Just tap, pay, and save," said Stephanie Tilenius, Google's vice president of commerce, at the May launch. So far, two out of three ain't bad.
Theoretically, Google Wallet offers the ability to upload third-party payment and loyalty cards as well, another step in eliminating the George Costanza-style wallet. However, aside from an agreement with American Eagle, that that capability has yet to be truly enabled. Expect more partnerships to be announced next month, I was told.

Google also hopes to eventually add the sort of "buy ten sandwiches, get one free" loyalty cards favored by smaller shops. "Everyone expects that Google has some sort of master plan, when in reality we have numerous programs running in parallel," Freed-Finnegan said. In other words, not yet.

Google Wallet already ties into Google Shopper, a nifty-looking mobile app which displays discounts from merchants near you or another location. According to the app, deals that you select are saved within your Wallet, and then triggered using a QR code or other acknowledgement. But my Offer screen displayed a large blank spot where the code should be, and I didn't bother driving fifteen miles to argue about whether or not I should receive a free order of churros with my burrito.

The in-app history of purchases also needs work. The history records the time at which "tap event" (not purchase) was made, but not the amount or location. To get that information, you'll need to call Money Network and speak with a live representative, a Money Network representative said.

Conclusion
We all know the steps necessary to pay with a credit card at a grocery store or coffeehouse: whip out the card, swipe, enter a PIN, or sign. It's quick, easy, and an ingrained habit. Google Wallet has the same potential.
While I very much doubt that states or federal agencies will allow identification to be stored within a phone any time soon, if ever, I think it's highly likely that tomorrow's kids will relegate the wallet to the same anachronistic garbage bin as the floppy disk, cassette tape, and VCR.
One case maker (The Callet) already provides a case with an attached pocket for storing a driver's license or credit card. (Ironically, it doesn't support any Android phones as yet.) This is the future. Will it have a Google logo emblazoned on it? Time will tell.

Sources: Mark Hachman PCmag.com

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