Wednesday, September 21, 2011

MasterCard learns from Google

Google is the most powerful marketing tool that has revolutionized the advertising world today. It is hard to believe that such a popular database only came to be about thirteen years ago. Before 1998, the world was less connected. There was no such thing as search engines and people would find information by going to libraries, borrowing books, and spending hours looking up pieces of information. Today hours become seconds thanks to Google. With a click, anyone can learn about Michael Jackson’s life for example in less then five minutes. Along with connecting people to information, Google also started to create other products such as Google maps, Google images, and Google earth; All being put together in order to serve the wants and needs of Google customers.

Recently, Google has teamed up with MasterCard in order to create an application for Smartphone’s called “Google Wallet”. The whole point of the App is to let people pay for goods by holding their Smartphone up to the MasterCard “PayPass” technology scanners available at most stores. The goal is to have a virtual wallet in your pocket. “The app’s official launch gives Google an edge over the crowd of companies angling for a share of the emerging mobile commerce and payments market” (Woyke 1). Many companies including PayPal are making it known that they are searching for ways to combine cell phones and payment options. “Google Wallet” is Google’s way of beating all other companies to the punch by going national and being the first to do so. Having been the first company to go widespread, Google wants to use “Google Wallet” in order to familiarize people with the idea that it is possible to use your phone as a credit card. Google hopes that with the launch citizens all over the world will enjoy a faster way to pay for goods while being able to carry less around in their pockets.

While testing the product, testers were frustrated when they did not know what stores would accept the App. MasterCard and Google responded by informing customers of a location store search available right in the application itself. When the product was being reviewed, reviewers stated that Google might want to open this product up to other credit card companies like Visa and American Express, which because of customer wants will be available in the near future.

Google made a smart decision when deciding to come out with this particular product. Google already has the trust of many customers because of past success and reliability. Google has mastered speaking to people and because of its past, Google customers are more likely to try out “Google Wallet” when they see it advertised in the media. This product also makes life a lot easier for the general public. If someone were too accidently forget their wallet at home, they would not have to return home to retrieve it in order to buy something if they had "Google Wallet" on their phone. They would just have to simply swipe their phone around the “PayPass” board and the payment would be sent right to their credit card bill.

Both Google and credit card companies will benefit from the release of this product. Google will be able to add advertising into the application, which will increase revenue. On the other hand, credit card companies will have another option for their customers when it comes to ways of purchasing goods using credit card accounts. Not only will the companies be happy but customers will be as well because “Google Wallet” will lead to more efficient lifestyles.

Wokye, Elizabeth. "What MasterCard Learned From Testing Google's 'Google Wallet' App." Forbes. 2011 LLC™, 19 Sept. 2011. Web. 21 Sept. 2011. 

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