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Google Inc. continues to cement its early grip on mobile payments, as indicated by the disclosure on Monday that the online search giant has acquired a small company in Toronto whose technology purports to enable payments, promotions, and advertising over mobile phones.
News of the deal follows in the wake of a number of significant announcements related to payments on mobile devices equipped with near-field communication (NFC) technology. It follows Google’s announcement last week of its Android-powered Nexus S smart phone, which will have NFC capability for mobile payments. Last month, the nation’s largest wireless operators said they are building a mobile-payments system called Isis that will use NFC and bypass the bank card networks.
Much about Google’s latest transaction, including its purpose, its price, and exactly when it closed, remains murky. The company, Zetawire Inc., has applied for a patent on its technology, though the current status of that technology is unclear. Google confirms it has bought the company but refuses to comment further. The deal came to light with a blog post by Ben Kolada, an analyst at The 451 Group who follows telecommunications. “The acquisition bolsters Google’s position in the coming wave of NFC and the phone as a device for payments, tracking, and identification,” Kolada says in the post.
The post indicates the acquisition may have closed in August, though Google did not announce it at the time. That timing has led to some speculation on Tuesday that Zetawire may have played a role in fashioning at least some elements of the Nexus S device. Contacted by Digital Transactions News, Kolada refused to comment further.
In other mobile news Tuesday, Visa Inc. released an application for the iPhone that lets users who have Visa cards receive offers and rewards from more than 50 participating merchants. The app lets users store the offers and relies on the device’s geo-location capability to give directions to nearby locations where the offers can be redeemed.
The app, available as a free download on the Apple iTunes store, allows users to tailor the kind of offers they are interested in receiving, and offers are then delivered and stored automatically. Participating merchants include 24 Hour Fitness, Jos. A. Bank, Meineke, New York & Company, and Zales.
