Google, Square reportedly test system to rival Apple Pay
In the wake of Apple Pay鈥檚 early success, rival Google is reportedly working with payment company Square on its own high-tech, credit-card-free, pay-at-the-register system.
Named Plaso, the system would let users of Google鈥檚 Android operating system speak their initials to pay at participating stores, tech blog聽听奥别诲苍别蝉诲补测.
The two companies have been testing the system since last fall, the blog reported, citing four sources who are involved with the product or have been briefed on it.
The story mentioned Papa John鈥檚 Pizza and Panera Bread Co. as retailers where the system could be used.
聽in October. The system, which works with the iPhone 6 and iPhone 6 Plus, allows users to make point-of-sale purchases with their phones, using information from their existing credit card and debit card accounts.
It鈥檚 expected to work in conjunction with the upcoming Apple Watch, letting users hold the device near a reader, as they currently do with their phones, without having to expose credit card information such as its number or security code.
Apple Pay has had some early success, striking deals with Visa, MasterCard and American Express, as well as more than 500 banks. It鈥檚 accepted at dozens of major retailers 鈥斅爄ncluding Bloomingdale鈥檚, the Disney Store, McDonald鈥檚, Chevron and Walgreens 鈥斅爓ith more stores, including Starbucks, to come, Apple promises.
Still a niche market
For its part, Google has offered Google Wallet, a cashless, cardless payment system, since 2011. But it has聽聽with retailers and consumers as widely as Apple Pay has.
Meanwhile, Square has worked to adjust to the era of digital transactions. Its mobile card reader has allowed small and independent businesses to accept credit cards using their smartphones since 2010. But with major players such as Google and Apple working to make fumbling in your wallet for a card obsolete, the company has scrambled to react.
The company聽聽to begin accepting Apple Pay sometime this year. But the report in The Information says Square, founded by Twitter co-founder Jack Dorsey, is working on an Android-based tablet of its own that would replace the iPads used by Square registers in many small businesses.
Although聽mobile point-of-sale payments have become popular in Japan and some other countries, they remain a niche market in the United States. But the early success of Apple 鈥斅犅爐hat two out of three transactions in the space are done on its service 鈥斅燾learly has other players scrambling to position themselves in what looks to be a growing market.
Photo via iStock.
