Google Unveils App for Paying with Phone - Personal Statement Example

To begin with, I reckon the app for paying with phone launched by Google recently, which is expected to be seen in mobile phones of the public by this summer, would be a revolution in the field of electronic payment transactions. As the technology engaged by Google suggests, it would be safer carrying your money in mobile phones, than carrying your plastic cards. “Mobile Wallet” as called by Google is an app for the Android phones, which when waved at retailer’s terminals, would let the payment through avoiding the usage of a credit card.

This app sends a message to the merchant’s terminal through a chip placed in the mobile phone. For now, this app allows the usage of cards issued by Citibank and a virtual card by Google, but Google is trying to incorporate the cards of other banks as well, as soon as possible. This technology can be used at 124,000 merchants in the US and 300,000 merchants outside the US. Google has done what many firms have been trying to do since years, the “Mobile Wallet” technology. One can be sure of the app’s success, as it has been approved by many retailers and with its promotional offers and coupons, Google would leave no tables unturned.

Google would also collect some fee from the retailers every time this app is used by the customers, just like the plastic cards. Though this technology needs some time to see the light, Google has been engaging top brands to accept payments through this technology. The other attractions of this app comprise the loyalty points and discounts that one can get using this app. On the other hand, controversies have already rounded this technology. PayPal has filed a suit against Google and a couple of its executives for the usage of PayPal’s trade secrets.

Despite the positive and the negative aspects of the app, it is sure to come up with many other interesting features as well. “Eventually, Google said, its wallet may be able to hold much more, including car keys and airline boarding passes. But access to such items will still require a fully charged phone.” (Bernard, 2011) Google since its advent has been adopting best strategies and so has it with the current strategy of launching this app. This strategy of Google when analyzed from the “Porter five force analysis” definitely looks like a good move.

The first Porter force of the threat of substitute products can be ruled out in this case, as this app is the first of its kind, and so can be the second force, the threat of established rivals for the same reason. The third force, the threat of new entrants is inevitable for any product, but this would have only a small effect on this app as it looks like a comprehensive one. The last two threats of bargaining power of suppliers and bargaining power of customers would be taken care of, by the highly experienced and diplomatic marketing officials of Google.

This analysis once again goes to prove the impeccable business strategies of Google in today’s competitive market. Google’s new “Pay with phone” app is clearly a boon to the customers. This would take the place of plastic money in no time. With the ample services and features that this app offers, none can refrain from having it in their phones. Since it looks like a better method of paying by avoiding the plastic, it also makes people less vulnerable to any direct thefts. But there is a negative side to this application too, that is people are becoming more tech-savvy these days and so are the cyber thieves.

Though Google ensures high security through the access of the app by a personal pin, it wouldn’t be long for us to hear hackers breaking these codes. But since Google ensures promising security with its matchless technology, perhaps people would find it comfortable using this new technology and would get acquainted with it in no time. To conclude, as this app is versatile with various features and user friendly interface and since this mode of payment is very likely to be approved by all retailers, we may soon find people waving their mobile phones for their purchases.

Works Cited Bernard, Tara Siegel. (2011, May 26). Google unveils app for paying with phone. Retrieved from http://www.nytimes.com/2011/05/27/technology/27google.html?_r=1