WEBVTT - What's in Google Wallet? 0:00:00.280 --> 0:00:02.960 Brought to you by the reinvented two thousand twelve Camray. 0:00:03.160 --> 0:00:08.920 It's ready. Are you get in touch with technology? With 0:00:09.000 --> 0:00:17.960 tech Stuff from how stuff works dot com. Hello again, everyone, 0:00:18.000 --> 0:00:20.560 Welcome to tech stuff. My name is Chris Poulette and 0:00:20.560 --> 0:00:23.000 I'm an editor at how stuff works dot com. Sitting 0:00:23.040 --> 0:00:27.040 across from me, as always senior writer Jonathan Strickland. It 0:00:27.040 --> 0:00:30.000 ain't fair how we scrounged for three or four bucks 0:00:30.080 --> 0:00:35.960 while she gets warbucks. The little brat as always excellent. 0:00:36.159 --> 0:00:41.280 Thank you. So we're gonna talk about Google Wallet today, indeed, 0:00:41.360 --> 0:00:44.480 and Google Wallet was a project that was announced back 0:00:44.680 --> 0:00:48.440 in I think May of eleven. It is now late 0:00:48.680 --> 0:00:51.600 June twenty eleven when we're recording this podcast, but we 0:00:51.640 --> 0:00:54.400 wanted to kind of talk about it and kind of 0:00:54.640 --> 0:00:58.200 go over what the implications of the the product is. 0:00:58.400 --> 0:01:01.480 Our gosh, I'm so tired. I've just got back from 0:01:01.520 --> 0:01:05.000 vacation and my my ability to speak in coherent sentences 0:01:05.000 --> 0:01:10.680 with proper grammar is sorely depleted. Yes, yes, so Google 0:01:10.680 --> 0:01:15.800 wallet fire bad. Um. Anyway, so we wanted to talk 0:01:15.800 --> 0:01:18.080 about what Google walle it is, how it works in 0:01:18.120 --> 0:01:21.880 a kind of bird's eye view level and what it 0:01:21.959 --> 0:01:26.319 might mean to the future of making purchases. Yeah, it's 0:01:26.360 --> 0:01:29.039 funny because this is not really a new topic at all, 0:01:29.080 --> 0:01:32.200 but it's new to many people here in the United 0:01:32.240 --> 0:01:33.960 States because I mean, this is the kind of thing 0:01:34.000 --> 0:01:37.320 that's been going on for many years over in Asia. Yeah, 0:01:37.440 --> 0:01:41.399 Japan in particular, Japan in particular. Um, basically the idea 0:01:41.400 --> 0:01:45.720 of being that you could uh store payment information in 0:01:45.920 --> 0:01:51.880 your cell phone or smartphone and uh use that information 0:01:52.000 --> 0:01:55.880 to make a payment when you go to a store. Yes, 0:01:56.000 --> 0:01:59.120 so instead of scanning a you know, swiping your credit 0:01:59.160 --> 0:02:02.720 card and signing a little digital thing, or or having 0:02:02.760 --> 0:02:04.200 to put in your pin number if you're using a 0:02:04.200 --> 0:02:06.720 debit card, or even using a credit card that has 0:02:06.720 --> 0:02:08.720 an r F I D chip in it where you 0:02:08.760 --> 0:02:12.400 know you'll you'll see those consoles at certain vendors where 0:02:12.840 --> 0:02:17.200 you can tap the card and that registers as a payment. Uh, 0:02:17.240 --> 0:02:19.240 instead of using a card at all, it would be 0:02:19.280 --> 0:02:21.760 stored on your phone. And you might ask, well, why 0:02:21.760 --> 0:02:24.079 would you even bother to do that, Like, why why 0:02:24.240 --> 0:02:26.120 have it on your phone? As opposed to if you 0:02:26.240 --> 0:02:29.560 if it's replacing tapping a card, how does that make 0:02:29.600 --> 0:02:31.760 it easier? If you put it on a phone, and 0:02:31.800 --> 0:02:34.440 that's a that's a legitimate question. I mean, one answer 0:02:34.480 --> 0:02:38.000 you could arguably give is that, well, you cut down 0:02:38.000 --> 0:02:39.840 on the things you need to carry. But when you're 0:02:39.840 --> 0:02:43.080 talking about a credit card, it's not like that's a huge, 0:02:43.160 --> 0:02:45.600 bulky thing that's really weighing it down. In fact, it's 0:02:45.720 --> 0:02:48.360 much smaller form factor than a cell phone or smartphone. 0:02:49.040 --> 0:02:53.280 So really the value in the proposition is that Google 0:02:53.360 --> 0:02:59.440 has has grouped this ability to pay through a a 0:02:59.480 --> 0:03:03.200 smartphone own with other services that kind of make it 0:03:03.600 --> 0:03:07.320 more of an attractive service. It's not it's not just 0:03:07.480 --> 0:03:09.280 that you can pay with a smartphone. There are other 0:03:09.720 --> 0:03:12.440 features that are involved that are pretty cool. Yeah. And 0:03:12.480 --> 0:03:16.440 in addition to that, Google says that it doesn't intend 0:03:16.600 --> 0:03:20.959 to replace a credit card. It intends to replace all 0:03:20.960 --> 0:03:24.040 of your credit cards and your loyalty cards. Does the 0:03:24.480 --> 0:03:27.400 cards that you carry around with you to UM. You know, 0:03:27.440 --> 0:03:29.760 if you you're at your grocery store and you get, 0:03:29.800 --> 0:03:32.840 you know, fifty cents off a can of tomatoes if 0:03:32.880 --> 0:03:36.560 you have the card, UM, basically you're selling them your 0:03:36.600 --> 0:03:38.920 information so they can market to you. But you also 0:03:38.920 --> 0:03:41.520 exchange they'll give you a discount, and you also get yeah, 0:03:41.720 --> 0:03:45.400 so not just loyalty cards, but also coupons, like electronic coupons. 0:03:45.920 --> 0:03:48.760 So so there might be a loyalty program. For example, 0:03:49.320 --> 0:03:53.600 here's an easy one. My wife really likes coffee, right, 0:03:53.640 --> 0:03:58.320 so she has loyalty cards with practically every coffee shop 0:03:58.520 --> 0:04:02.960 that is in a ten mile radius of our home. Yeah. 0:04:03.200 --> 0:04:05.800 Her loyalty to coffee as legendary, Yes, to the point 0:04:05.800 --> 0:04:07.880 where you know, she has to sort through her loyalty 0:04:07.920 --> 0:04:10.080 cards when she goes into a coffee shop to determine 0:04:10.120 --> 0:04:13.320 which one of her cards applies at that shop. And 0:04:13.400 --> 0:04:15.440 so you know, it's one of those things where you know, 0:04:15.600 --> 0:04:17.760 you buy nine coffees and the tenth one is free, 0:04:18.400 --> 0:04:21.080 same sort of thing, except it stored electronically on your phone, 0:04:21.120 --> 0:04:24.920 and so it the the application of Google Wallet keeps 0:04:24.960 --> 0:04:27.719 track of how many times you've been to this particular 0:04:27.839 --> 0:04:31.400 place and bought a particular thing, and then automatically registers 0:04:31.400 --> 0:04:33.520 when you hit ten, and so when you go to 0:04:33.560 --> 0:04:37.520 pay it registered, it files that information for you. It's 0:04:37.560 --> 0:04:39.800 the same as if your card had been stamped a 0:04:39.880 --> 0:04:42.440 tenth time, and then you don't have to uh and 0:04:42.480 --> 0:04:46.000 want you don't get the price of the coffee deducted 0:04:46.040 --> 0:04:50.400 from your account or charged to your card. Um. And 0:04:50.440 --> 0:04:52.559 before we get too far into this, just before we 0:04:53.240 --> 0:04:55.839 launch into it, I wanted to mention UH that we 0:04:55.880 --> 0:05:00.480 do have an article about paying UH with a cell phone. 0:05:00.480 --> 0:05:02.520 In fact, it's called can you use a cell Phone 0:05:02.560 --> 0:05:05.320 as a credit Card? And Julia Layton wrote that article 0:05:05.360 --> 0:05:07.799 and it's a UM. If you go and read the article, 0:05:07.800 --> 0:05:10.920 you'll actually notice that there's some mention of of this 0:05:11.080 --> 0:05:13.880 debuting in the United States back in two thousand seven, 0:05:14.240 --> 0:05:17.239 and not Google Wallet, but the ability to pay using 0:05:17.480 --> 0:05:20.239 using a phone as a credit card. Now, keep in mind, 0:05:20.400 --> 0:05:23.320 even two thousand seven is late to the game compared 0:05:23.360 --> 0:05:26.440 to Japan. That's that's true. That's true. UM. I just 0:05:26.480 --> 0:05:29.520 wanted to go before we go any further to UM. 0:05:29.560 --> 0:05:33.520 Google is also saying that in addition to loyalty cards 0:05:34.040 --> 0:05:37.559 and credit cards, Google says that it that Google Wallet 0:05:37.560 --> 0:05:40.760 will eventually allow you to use gift cards, receipts, boarding passes, 0:05:41.520 --> 0:05:47.560 UM and and possibly your keys UM available through Google Wallet. 0:05:47.640 --> 0:05:51.920 So UM it would in fact, in theory be able 0:05:51.960 --> 0:05:53.839 to reduce the amount of stuff you would need to 0:05:53.839 --> 0:05:56.279 carry in your wallet. Now, I noticed there's no driver's 0:05:56.360 --> 0:06:00.440 license mentioned in their passport. That would be interesting to see. 0:06:00.440 --> 0:06:04.200 Although passports in the United States do have a radio 0:06:04.240 --> 0:06:07.520 frequency identification chip, Yes they do. So I have a 0:06:07.520 --> 0:06:11.840 little little wallet that blocks that. Yes, mine. We'll talk 0:06:11.880 --> 0:06:14.320 about that later too, because that's gonna come up. But 0:06:14.360 --> 0:06:17.359 we should probably talk about the you know, how it 0:06:17.400 --> 0:06:20.000 works and the benefits of using it. Sure now, when 0:06:20.040 --> 0:06:22.479 they were when Google was launching this, they were talking 0:06:22.480 --> 0:06:28.960 about two specific other partners with this. Yes, there are 0:06:28.960 --> 0:06:32.480 also thousands of vendors that are going to support this, 0:06:32.600 --> 0:06:36.040 but the two partners specifically that I wanted to talk 0:06:36.080 --> 0:06:41.320 about where Sprint because the phone that they're debuting the 0:06:41.440 --> 0:06:45.000 Google Wallet service on is the Nexus S four G, 0:06:45.240 --> 0:06:48.320 which is only on Sprint, Yes, all right. And then 0:06:48.640 --> 0:06:51.839 City MasterCard, which is that you know, that's where that's 0:06:51.880 --> 0:06:54.360 got the financial backing. That's so if you want to 0:06:54.400 --> 0:06:58.479 have Google Wallet, you have really two choices as far 0:06:58.600 --> 0:07:02.320 as what kind of payment option you go with. You 0:07:02.320 --> 0:07:06.680 can either apply to get a City MasterCard account, or 0:07:06.760 --> 0:07:08.799 if you already have one, you can enter that information 0:07:08.839 --> 0:07:13.000 into Google Wallet and that will become your Google Wallet account. 0:07:14.000 --> 0:07:18.480 Or you can get a Google Prepaid card and Google 0:07:18.480 --> 0:07:21.240 Prepaid Card is you know, it's essentially what sounds like, 0:07:21.280 --> 0:07:24.200 you can you can put money into your Google Prepaid 0:07:24.240 --> 0:07:26.800 card and use that for payments, kind of like you know, 0:07:26.960 --> 0:07:30.040 like pay Pal or any other sort of gift card 0:07:30.160 --> 0:07:32.840 kind of approach. Um, And what's kind of interesting is 0:07:32.880 --> 0:07:37.400 that if you do the Google prepay approach, they will 0:07:37.440 --> 0:07:41.160 actually credit you ten dollars in your account, so you'll 0:07:41.200 --> 0:07:43.880 get ten bucks for free. Yeah, I thought that was 0:07:44.240 --> 0:07:49.280 pretty funny. Actually, and at least until um the end 0:07:49.360 --> 0:07:52.760 of twenty eleven, you will not have to pay any 0:07:53.000 --> 0:07:56.920 fees to add money to your Google Prepaid card. So, 0:07:56.960 --> 0:07:58.880 in other words, it's not like you get a service 0:07:58.920 --> 0:08:01.520 feed up added on top of you know, you want 0:08:01.520 --> 0:08:04.120 to add say a hundred dollars to your Google Prepaid card, 0:08:04.360 --> 0:08:06.000 You're not going to get a service fee of five 0:08:06.080 --> 0:08:08.720 bucks on top of that, at least until the end 0:08:08.760 --> 0:08:11.680 of twenty eleven. Now, uh, what does that mean that 0:08:11.720 --> 0:08:15.120 in they'll start adding in a service fee. Maybe we 0:08:15.200 --> 0:08:19.160 don't know. But the wording is specifically about till the 0:08:19.320 --> 0:08:22.320 end of or at least until the end of twenty eleven, 0:08:22.360 --> 0:08:25.600 is how they put it. So, um, yeah, you've got 0:08:25.720 --> 0:08:27.920 so you've got the that's the backing as far as 0:08:27.920 --> 0:08:32.080 payment goes, so it's either City MasterCard or the prepaid card, 0:08:32.840 --> 0:08:37.640 which you can use any credit card to purchase money 0:08:37.679 --> 0:08:40.400 to go toward the prepaid card. You don't have to 0:08:40.400 --> 0:08:44.200 have a City master Card for that one. Uh. Well, 0:08:44.240 --> 0:08:47.840 what about the actual payment process, like, how does this 0:08:48.040 --> 0:08:51.959 transfer happen? Well, it happens through UM something called an 0:08:52.080 --> 0:08:56.959 NFC chip. Yes, that's near field communication. UM. This is 0:08:57.000 --> 0:08:59.520 a little different from the r F I D chip 0:09:00.000 --> 0:09:03.040 that you find in your UH and some of your 0:09:03.080 --> 0:09:06.040 credit cards, which is if you if you have one, 0:09:06.080 --> 0:09:09.440 you'll know it. It's that that little uh usually gold 0:09:09.480 --> 0:09:13.680 color or silver colored UM piece of metal embedded in 0:09:13.679 --> 0:09:17.840 the chip. Basically that has your your information UH in 0:09:17.920 --> 0:09:21.760 it so that when you UH take it near one 0:09:21.760 --> 0:09:24.960 of those paid UH pads and you touch it to 0:09:25.080 --> 0:09:28.880 that the pad can read that of course. UM. You know, 0:09:29.160 --> 0:09:32.600 basically it's as far as you know, it's not electronic 0:09:32.760 --> 0:09:35.160 or anything like that. It doesn't have you know, need 0:09:35.160 --> 0:09:38.920 a battery or anything to operate. UM. So it's it, 0:09:39.080 --> 0:09:42.800 but it's essentially always on. There's nothing keeping it from 0:09:42.880 --> 0:09:44.880 being read at any time, which is one of the 0:09:45.400 --> 0:09:49.160 criticisms people have of R f i D chips, and 0:09:49.400 --> 0:09:52.200 as Jonathan was saying, he's got apparently he carries a 0:09:52.240 --> 0:09:55.720 Faraday cage in his wallet. It's a it's it's a 0:09:55.760 --> 0:09:59.480 special case that has r f i D blocking material, 0:10:00.240 --> 0:10:03.000 or not r f i D blocking material, but blocks 0:10:03.080 --> 0:10:06.360 radio frequencies. Right, So if somebody had something that could 0:10:06.800 --> 0:10:09.880 if he weren't carrying that, and somebody had something that 0:10:09.920 --> 0:10:13.000 could pick up an r f i D chip near enough, 0:10:13.520 --> 0:10:15.960 and they just you know, bumped into him in public, 0:10:16.000 --> 0:10:19.360 say like a pickpocket might, except without having to pick 0:10:19.400 --> 0:10:22.520 his pocket, they could read the number off of the card. Um. 0:10:22.559 --> 0:10:25.600 I also find that having r f i D chips, 0:10:25.679 --> 0:10:28.560 multiple r f i D chips in my wallet will 0:10:28.679 --> 0:10:34.840 interfere with things like the UH rapid transit system in Atlanta. 0:10:34.920 --> 0:10:37.000 If you have another r f i D chip, it 0:10:37.080 --> 0:10:40.160 will you know, they'll the two signals will cancel each 0:10:40.160 --> 0:10:44.240 other out and say I can't read that the wallet. Um, 0:10:44.280 --> 0:10:46.960 that's annoying. It's so irritating having to go all the 0:10:47.000 --> 0:10:48.760 way to taking a card out of your wallet to 0:10:48.800 --> 0:10:50.800 tap against the little circle so that you can go 0:10:50.840 --> 0:10:55.079 in and ride public transportation. Such an inconvenience, But in goodness, 0:10:55.080 --> 0:11:00.000 we got rid of that token system. But in contrast, UM, 0:11:00.080 --> 0:11:03.040 the near field communication system can be turned on and off, 0:11:03.200 --> 0:11:07.520 and there is a transceiver built into UH the NFC 0:11:07.679 --> 0:11:10.760 enabled phones in this case the nexus S that will 0:11:10.760 --> 0:11:14.199 allow you to transmit that information, so it can be 0:11:14.360 --> 0:11:17.959 you can turn it off essentially. UM, now you can 0:11:18.000 --> 0:11:21.640 have and you can have a passive NFC system where 0:11:21.840 --> 0:11:24.160 where one element is just like with r F I D, 0:11:24.280 --> 0:11:26.760 where one element is is active and then the other 0:11:26.800 --> 0:11:30.040 one is passive. But in the case of smartphones we're 0:11:30.040 --> 0:11:32.880 talking about and both both parts are active. And then 0:11:32.880 --> 0:11:35.199 you say, all right, well enough about this, how does 0:11:35.200 --> 0:11:40.200 it actually work? All right? Well, uses inductive coupling. Really, yeah, 0:11:40.360 --> 0:11:43.480 so we're talking inducing electricity. And if you guys have 0:11:43.520 --> 0:11:45.240 been listening to tech stuff for a while, you know 0:11:45.280 --> 0:11:48.280 we've talked about this in multiple episodes and including some 0:11:48.320 --> 0:11:52.719 of our Basic Electronics episodes and others. So induction, we're 0:11:52.760 --> 0:11:58.600 talking about that wonderful relationship between electric electricity and magnetic fields. 0:11:58.840 --> 0:12:02.640 So electric fields and the magnetic fields, and so what's 0:12:02.679 --> 0:12:06.960 happening with U NFC is that it's you have at 0:12:07.040 --> 0:12:10.560 least one element that's producing magnetic field and then you 0:12:10.600 --> 0:12:13.559 have another element that has a coil of wire in it. 0:12:14.040 --> 0:12:17.400 And when you pass that that chip that has the 0:12:17.440 --> 0:12:21.120 coil of wire in it next or through that magnetic field, 0:12:21.800 --> 0:12:24.920 it alters the magnetic field, all right, and it alters 0:12:24.920 --> 0:12:26.880 it in such a way depending upon the coil of 0:12:26.880 --> 0:12:30.439 wire that's in that chip and other elements. It manipulates 0:12:30.440 --> 0:12:32.880 that magnetic field in such a way that something that 0:12:33.160 --> 0:12:37.240 electricity flows through that active element and then whatever is 0:12:37.280 --> 0:12:41.760 supposed to happen theoretically happens. So yeah, exactly. So example, 0:12:41.760 --> 0:12:44.719 for example, if it's a locked door and it has 0:12:44.800 --> 0:12:48.360 an electric lock that is producing this, it's using near 0:12:48.400 --> 0:12:51.720 field communication. UM. You have the little pad on the 0:12:51.720 --> 0:12:55.000 door that is actively generating this magnetic field. You pass 0:12:55.080 --> 0:12:58.600 your key fob through that magnetic field. It registers that 0:12:58.720 --> 0:13:03.280 as the correct uh kind of alteration of that mannetic 0:13:03.320 --> 0:13:05.960 field that corresponds to this person has a key to 0:13:06.080 --> 0:13:09.920 this office and it will unlock. Now with the smartphones, 0:13:09.920 --> 0:13:13.320 you've got the two different magnetic fields that are being generated, 0:13:13.720 --> 0:13:16.640 and that's where you can have this communication passed between 0:13:16.679 --> 0:13:21.000 the two where essentially you have one asking for identification 0:13:21.040 --> 0:13:24.640 and the other one UM making sure that registers that 0:13:24.800 --> 0:13:27.240 it's an actual payment. You know, you have to have 0:13:27.280 --> 0:13:30.120 this work on both sides for this to to take place. 0:13:30.520 --> 0:13:33.559 So um and just in case you're curious, the data 0:13:33.679 --> 0:13:39.440 rates that can transfer between two devices in an NFC system, Uh, 0:13:39.640 --> 0:13:43.200 there are three different data rates that are possible. And 0:13:43.240 --> 0:13:45.640 when you hear how what the speeds are, you gonna think, wow, 0:13:45.679 --> 0:13:49.240 that's pretty slow compared to like an Internet connection, like 0:13:49.280 --> 0:13:52.640 a broadband Internet connection a hundred six killabits per second, 0:13:52.920 --> 0:13:56.400 two twelve kilabits per second, and four four killa bits 0:13:56.440 --> 0:13:58.120 per second. But you gotta keep in mind that the 0:13:58.120 --> 0:14:01.680 amount of information that's being transferred here minuscule. Yes, you know, 0:14:01.720 --> 0:14:06.760 you're talking about some sort of identification, credit card information, um, 0:14:06.800 --> 0:14:09.679 and that's it really and well, purchase price or whatever. 0:14:10.559 --> 0:14:13.240 But it's tiny in comparison to the amount of data 0:14:13.280 --> 0:14:15.560 you get even just loading up a basic web page. 0:14:15.840 --> 0:14:18.960 So you don't really need a super fast data transfer 0:14:19.080 --> 0:14:24.239 rate in order for this to work. So the smartphones 0:14:24.280 --> 0:14:27.760 are using this NFC technology, and the the vendors have 0:14:27.880 --> 0:14:29.880 to use it as well. I mean, obviously, even if 0:14:29.920 --> 0:14:31.960 you've got Google Wallet and you walk into a store, 0:14:31.960 --> 0:14:33.920 there's no guarantee you can use your phone to pay 0:14:33.960 --> 0:14:36.720 for whatever you're buying, the vendor has to also have 0:14:37.440 --> 0:14:40.720 their half of the system in place, right, So yeah, 0:14:40.760 --> 0:14:42.480 you can't just walk up to a cashier and wave 0:14:42.520 --> 0:14:44.800 your phone around and it will pay for it. You 0:14:44.880 --> 0:14:48.320 might get some funny looks or be politely asked to leave, 0:14:48.440 --> 0:14:52.240 or maybe not politely asked to leave. Well, um it does. 0:14:52.320 --> 0:14:58.520 If you've seen the MasterCard pay pass system, UM, then 0:14:58.880 --> 0:15:01.040 there there are actually play says. There's a on the 0:15:01.080 --> 0:15:05.960 Google Wallet UM information site. There is a way to 0:15:06.040 --> 0:15:09.480 look up whether or not they're Google Wallet merchants in 0:15:09.480 --> 0:15:12.880 your area. And basically any place that has that system 0:15:13.040 --> 0:15:17.400 already in place, that system will interact with Google Wallet 0:15:17.480 --> 0:15:20.520 or is this it's supposed to? Um? Plus, there are 0:15:20.560 --> 0:15:22.280 other places to a lot of the stores that you 0:15:22.320 --> 0:15:25.480 might find the malls here UM in the United States, 0:15:25.520 --> 0:15:29.080 and some restaurants UM. You know, places like blooming Gale's 0:15:29.680 --> 0:15:34.960 or American Eagle, Macy's, um Arby's. Yeah, that's true because 0:15:35.000 --> 0:15:38.120 I actually went. Uh. If you go to to Google's 0:15:38.160 --> 0:15:40.920 pages on this, they have a little section where you 0:15:40.920 --> 0:15:43.000 can type in your zip code and see what what 0:15:43.160 --> 0:15:48.760 stores nearby are. UM have that that option and so 0:15:48.800 --> 0:15:51.520 I checked for our office just out of curiosity and 0:15:51.560 --> 0:15:54.400 saw that there was an Arby's. And uh, it's interesting 0:15:54.400 --> 0:15:56.960 because we actually have a couple of really large malls 0:15:57.560 --> 0:16:00.440 near our office, and I didn't see a lot of 0:16:00.480 --> 0:16:03.800 stores in those malls that had adopted us. Now. Granted, 0:16:04.600 --> 0:16:07.760 even though this technology, again the technology itself is not new, 0:16:08.120 --> 0:16:11.640 the product and the service are very new. Uh so 0:16:11.680 --> 0:16:13.920 it's not a huge surprise that there's not a widespread 0:16:13.960 --> 0:16:17.520 adoption yet. But what is interesting to me his Eric 0:16:17.560 --> 0:16:22.600 Schmidt has said that he believes within a year there 0:16:22.600 --> 0:16:25.480 will be widespread adoption. So, based upon the recording of 0:16:25.480 --> 0:16:29.400 this podcast within by June two thousand and twelve, Schmidt 0:16:29.480 --> 0:16:34.120 expects that this NFC approach to paying for goods and 0:16:34.200 --> 0:16:38.520 services will be widespread. I'm holding him to that. It 0:16:38.560 --> 0:16:43.120 would be nice. I mean, especially again we'll get back 0:16:43.160 --> 0:16:45.760 to the offers and everything with Google Wallet to talk 0:16:45.800 --> 0:16:50.600 about how you know that adds value to their their service. Um, 0:16:50.640 --> 0:16:54.360 but uh, I mean it would be nice to know 0:16:54.440 --> 0:16:57.240 that we are no longer kind of in the the 0:16:57.280 --> 0:17:02.200 relatively dark agents technologically speaking, compared to like Japan. I 0:17:02.240 --> 0:17:04.000 know I keep bringing that up, but I mean Japan 0:17:04.119 --> 0:17:06.399 is light years ahead of us as far as the 0:17:06.480 --> 0:17:10.879 mobile technology goes, you know, I mean they're we're catching 0:17:10.960 --> 0:17:14.000 up definitely. And I know that the iPhone is has 0:17:14.320 --> 0:17:17.920 become popular in Japan as well, So it's not like, uh, 0:17:18.000 --> 0:17:20.080 you know they look at our our brand new toys 0:17:20.119 --> 0:17:27.800 and say, man, that was cool five years ago. Well, um, well, 0:17:27.840 --> 0:17:29.600 that's something I want to talk about in a minute. 0:17:29.600 --> 0:17:31.359 There I wanted to bring up before we got away 0:17:31.359 --> 0:17:35.399 from too far away from how it works. I feel 0:17:35.400 --> 0:17:38.000 compelled to point out that there is another step. You 0:17:38.000 --> 0:17:41.879 don't just tap your phone to the pad and you know, 0:17:41.960 --> 0:17:44.560 say thank you very much, here's your receipt. There is 0:17:44.560 --> 0:17:48.040 another step. Now you you might be wondering, uh, you know, 0:17:48.119 --> 0:17:50.480 how does it know it's me? You have to enter 0:17:50.520 --> 0:17:53.840 a pin on your phone. Your phone has to be 0:17:53.960 --> 0:17:56.320 on if it if it is off, if you've run 0:17:56.320 --> 0:17:59.200 out of battery, you've run out of cash or not cash. 0:17:59.240 --> 0:18:01.760 But you know, um yeah, you can't usually can't use 0:18:01.800 --> 0:18:04.800 it anymore because it's got to be able to receive 0:18:04.800 --> 0:18:07.560 a signal. Now you don't have to have a a 0:18:07.640 --> 0:18:10.640 phone signal where you are. So you're in a really 0:18:10.680 --> 0:18:14.400 giant mall um away from a tower, and you're way 0:18:14.400 --> 0:18:16.240 from a tower and you can't get a signal. Why, 0:18:16.240 --> 0:18:18.200 I can't imagine the mall that wouldn't have its self. 0:18:19.040 --> 0:18:22.359 But there's there are places. There are places near where 0:18:22.359 --> 0:18:24.480 I live that are right around the corner where I live, 0:18:24.560 --> 0:18:27.159 and there are certain stores that if you go into it, 0:18:27.160 --> 0:18:29.320 it's like they've built a fair day cage around that 0:18:29.359 --> 0:18:32.399 store because you can't your signal drops like a like 0:18:32.400 --> 0:18:34.879 like a like a stone, like like something that drops 0:18:34.960 --> 0:18:37.399 very like something that it hung in the air, the 0:18:37.440 --> 0:18:42.000 same way bricks. Don't I love that? Um? But yeah, 0:18:42.280 --> 0:18:44.399 you have to you have to be able to identify yourself. 0:18:44.480 --> 0:18:46.400 The phone has to be on for you to complete 0:18:46.440 --> 0:18:50.280 the transaction. UM. As a matter of fact, the uh, 0:18:50.320 --> 0:18:53.000 the information is stored in something that Google is calling 0:18:53.160 --> 0:18:56.920 the Secure Elements. Yes, it's not. It's not connected directly 0:18:56.960 --> 0:19:00.000 to the Android processing chip. That was a very important 0:19:00.440 --> 0:19:03.040 part of Google's presentation. They wanted to make sure that 0:19:03.160 --> 0:19:06.200 everyone understood the what measures they had taken to ensure 0:19:06.280 --> 0:19:08.920 security of this, because you know you could you could 0:19:09.600 --> 0:19:14.280 clearly any time you're talking about transmitting data wirelessly. There's 0:19:14.280 --> 0:19:17.280 this whole fear that there's a way that that data 0:19:17.320 --> 0:19:20.360 could get leaked and compromised. And of course we all 0:19:20.400 --> 0:19:24.840 know that you don't have to transmit data wirelessly in 0:19:24.960 --> 0:19:27.800 order for your information to be compromised. I know this 0:19:27.960 --> 0:19:33.520 from recent personal experience. But um, but any time that 0:19:33.840 --> 0:19:38.760 you see that that medium of exchange, that's one of 0:19:38.760 --> 0:19:41.359 the concerns you have, right. So, yeah, the secure element 0:19:41.520 --> 0:19:47.800 is is completely separate from the Android processor and the 0:19:47.920 --> 0:19:53.400 apps that Google walad app does not directly um access 0:19:53.480 --> 0:19:56.560 the secure element. So, in other words, they wanted to 0:19:56.560 --> 0:19:59.040 make sure that if you were to, say, lose your phone, 0:19:59.400 --> 0:20:02.600 that getting hold of your credit card information would not 0:20:02.760 --> 0:20:05.320 be an easy thing to do. Now, that's not to 0:20:05.359 --> 0:20:09.440 say that some enterprising hacker couldn't figure out a way 0:20:09.440 --> 0:20:11.680 to do it. So even if you were to lose 0:20:11.720 --> 0:20:16.200 your phone, the Google stresses that you should immediately contact 0:20:16.240 --> 0:20:18.960 your your bank or other financial institution, or to change 0:20:18.960 --> 0:20:21.440 your credit cards, canceled them out and get new ones, 0:20:21.520 --> 0:20:24.840 because you know, you never want to just entrust and 0:20:25.080 --> 0:20:28.720 say that something is completely secure from all possible attacks. 0:20:28.960 --> 0:20:33.280 Because we all learned a lesson from Titanic, well, Uly 0:20:33.400 --> 0:20:39.320 Leonardo DiCaprio is dreamy well, and in the case of 0:20:39.600 --> 0:20:43.480 the uh nexus s the secure element is an n 0:20:43.600 --> 0:20:46.960 x p p N six K chip. I'll sure give 0:20:47.000 --> 0:20:50.159 it away now everyone knows. According to Clinton Bolton from 0:20:50.280 --> 0:20:55.040 E Week, UM and yeah, lest you think, as I 0:20:55.080 --> 0:20:59.400 saw in comments on his article, UM, that we are 0:20:59.600 --> 0:21:05.240 necessary early spreading fear, uncertainly, uncertainty and doubt, all otherwise 0:21:05.240 --> 0:21:08.720 known as fud UM. I just I feel compelled to 0:21:08.760 --> 0:21:12.680 report um as other people did. I saw this person 0:21:12.800 --> 0:21:17.840 quoted a couple of times UM McAfee security expert UM 0:21:17.960 --> 0:21:23.040 Jimmy Shaw, who basically was saying that based on what 0:21:23.119 --> 0:21:26.040 he knows the system, it's not that the system isn't 0:21:26.080 --> 0:21:29.800 designed with security in place, he you know, so much 0:21:29.840 --> 0:21:33.520 as he thinks that it might be possible to take 0:21:33.600 --> 0:21:38.280 the authentication key from the Google Wallet application itself and 0:21:39.240 --> 0:21:43.720 uh rite an application that will allow somebody to fool 0:21:43.760 --> 0:21:47.080 the secure element into giving up what it has. It's 0:21:47.080 --> 0:21:50.600 not the secure element that he sees as the weak 0:21:50.840 --> 0:21:56.080 link the app as being reverse engineer able to get 0:21:56.160 --> 0:21:59.520 at whatever the you know your PIN number and just 0:22:00.000 --> 0:22:05.159 it yes, sorry, you know pin? Actually the end of 0:22:05.160 --> 0:22:09.840 the personal number, the personal identification number number, UH your 0:22:09.880 --> 0:22:14.600 Windows phone. Now we're talking to Android I'm sorry. Yes, yeah, 0:22:14.840 --> 0:22:20.120 they basically they feel that it's possible to do that. Now, um, yes, 0:22:20.200 --> 0:22:22.760 you could say that Google has gone to a lot 0:22:22.760 --> 0:22:25.639 of trouble to ensure that it's not going to be 0:22:25.720 --> 0:22:28.800 easy to make this happen. Um and and and people 0:22:29.720 --> 0:22:34.040 uh who like this idea are probably saying no, you're 0:22:34.080 --> 0:22:37.480 just saying this, and it's it's very unlikely. Yes, it's unlikely, 0:22:38.240 --> 0:22:41.199 but it's possible. It's a good idea to keep that 0:22:41.240 --> 0:22:45.520 in mind. Just like any bank, it's possible that it 0:22:45.520 --> 0:22:49.600 could get robbed. It's likely, but it's possible, and it's 0:22:49.640 --> 0:22:52.359 possible you could have your card skimmed when you go 0:22:52.480 --> 0:22:56.359 to a machine or that it is very possible, and 0:22:56.600 --> 0:22:58.560 you know that there might be a very tiny camera 0:22:58.680 --> 0:23:05.320 recording your movements that you so anyway the but but 0:23:05.480 --> 0:23:07.719 also we should keep in mind that Android phones have 0:23:08.200 --> 0:23:12.720 um have optional or locking systems on them as well. 0:23:12.800 --> 0:23:15.359 So that's as a second level of security, which is 0:23:15.600 --> 0:23:17.960 separate from the Google wallet. Like that's just so that 0:23:18.000 --> 0:23:19.600 you can use your phone. So for example, if you 0:23:19.640 --> 0:23:21.720 were to pick up my phone, you would find out 0:23:21.760 --> 0:23:25.199