Google Chief: More Customers to Pay With Phones

One third of all stores will be able to process mobile payments within the next year, Google executive chairman Eric Schmidt said, according to a June 22 report in the Financial Times.

Mobile payments are generally processed over smartphones. For now, they can only be processed by retailers equipped with the proper “Near Field Communication” technology.

The money to upgrade retailers to NFC “will be spent not by Google and not by the phone guys but by the credit card companies, because the fraud rates are so much lower,” Schmidt said. “Nobody knows how quickly this will occur but it’s in their interests to convert as fast as they humanly can.”

On May 26, Google introduced Google Wallet, a new service that will allow users to pay for items with a tap of their phone, on the heels of a similar “digital wallet” service from Visa.

JCK examined how smartphones could impact retail in its May issue.