Near Field Communication Brings Opportunity Closer

Last week Google said it was field-testing Google Wallet. Near field communication (NFC) technology powers Google Wallet, a new way to pay for goods using a mobile device such as an Android phone. Swipe your phone near the retailer's NFC device to pay for your transaction. No need to pull out the plastic.

This is done in partnership with Citi, MasterCard, First Data, and Sprint. You can access a brief demo here. The system doesn't charge your phone bill as the purchase of an app or some other mobile transactions might. Instead, you store your credit card information on your cell phone, and charges made using NFC are deducted from your credit or bank account.

Possibilities with this digital wallet are promising. Google says Wallet can integrate with merchant offerings such as coupons and loyalty programs. A business can send a customer an offer, then take payment and tabulate points to the loyalty program all in one fell swoop.

It's still early days for this offering. Retailers need to get the hardware, customers need to get the software, and probably more partners have to get on board before this becomes more than a field test.

Eventually, Google Wallet can bundle in all kinds of digital keepers. It could handle credit card transactions, offers, loyalty cards, and gift cards. It's could also replace boarding passes, tickets, an ID or driver's license, and even card keys. And unlike George Costanza's exploding wallet, each receipt and piece of paper won't add to the bulge in your back pocket.