Google tests hands-free payments

At its I/O developer conference last week, Google revealed a prototype of a "Hands Free" payment feature that will allow customers to pay without taking out their wallet or phone.

To use the feature, customers would download an app onto their mobile phone. When checking out, the shopper indicates they’re paying with Google. A Bluetooth sensor detects the app and instantly bills them. The cashier is apparently able to verify the user by seeing an image of their face and their name on the register.

A Hands Free website inviting individuals and merchants to partake in future tests explored some of the potential security concerns. The site reads, "When you make a purchase, your full card details will not be shared with stores. Once you complete a purchase, you’ll receive an instant notification right on your phone. We’ll also alert you to any unusual activity so you can go hands-free and be worry-free."

The site did not provide further specifics. Kyle Wiggers, for Digital Trends, wrote that "presumably a combination of geofencing and cloud-saved banking credentials" backed the technology.

[Image: Hands Free]

Several reports noted that similar technologies have been tested but not rolled out. Square introduced hands-free payments in 2011, but has since retired the feature apparently because it didn’t gain traction with merchants. In 2013, PayPal premiered a similar technology using Beacon.

The Hands Free test, which was described as in the "early prototype stage," came in the afternoon of the conference following Google’s launch of Android Pay, a tap-to-pay mobile payments app that will be initially available at 700,000 stores.

A Google spokesperson told The Verge it was too early to know if and when Hands Free would be integrated with Android Pay.

The technology will be tested in coming months at select McDonald’s and Papa John’s in San Francisco. At the I/O developer session, McDonald’s Chief Digital Officer Atif Rafiq called Hands Free "an entirely new level of convenience."

BrainTrust

"First reaction: we are incredibly lazy. Second reaction: Not a lot of scenarios where I can envision NEEDING such technology. The main one I came up with (remember, it’s Monday morning): Purchasing ice cream on a really hot day and trying to negotiate the melting cone while reaching for my wallet. Then again, I should have gotten a bowl, right?!"

Kelly Tackett

Principal, 3E Insights


Discussion Questions

Do you see “hands-free” convenience as the future of payments? What concerns will consumers have or should have?

Poll

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Max Goldberg
Max Goldberg
8 years ago

Whether Google Pay or Apple Pay, retailers need to be testing mobile payment applications. Too many smartphones will be equipped with them to ignore.

What should concern retailers and consumers is the security of mobile payments. Knowing that hackers will consistently try to crack the payment systems, retailers and consumers must be comfortable with the security of these payment options. If the options feel secure, they will be used.

Tony Orlando
Tony Orlando
8 years ago

I have to admire the gurus who continue to make these advances, but it will take quite some time for all of this stuff to be mainstream. I can see some issues with this, as it may take a whole new set up for the registers, and the investment needs to be affordable and adaptable to our modern systems. Apple Pay, Android Pay, and a host of others are all claiming their the best, and we as retailers are scratching our heads wondering what the next great thing will bring customers to our stores. By the way, I still accept cash, just saying.

Steve Montgomery
Steve Montgomery
8 years ago

Another of today’s articles is on the line between creepy and cool. I think this falls on the creepy side. Why? Because not only is the purchaser’s name going to pop up on the screen but so is their picture. I can just see the supermarket checkout line looking up and not only seeing the customer’s name but their picture as well (best we all get beauty shots).

May be an age thing, as young people today seem to be willing to post everything about their lives online.

Kelly Tackett
Kelly Tackett
8 years ago

First reaction: we are incredibly lazy.

Second reaction: Not a lot of scenarios where I can envision NEEDING such technology. The main one I came up with (remember, it’s Monday morning): Purchasing ice cream on a really hot day and trying to negotiate the melting cone while reaching for my wallet.

Then again, I should have gotten a bowl, right?!

Shep Hyken
Shep Hyken
8 years ago

This is the future! How cool is this? For now it is a test. There will be bugs to work out, for example, the length of time it takes to make the Bluetooth connection. It will have to be fast, almost instantaneous. It will have to be easy. Eventually there will have to be public acceptance for this to work. I’m excited to try it out.

Li McClelland
Li McClelland
8 years ago

Only a few days ago we were opining on whether people will ever give up the security of their paper sale fliers or come to accept private brands from Amazon instead of staying with their tried and true brands. Now we’re being asked if shoppers will readily accept and believe that this “hands-free” payment thingy is secure?! It’s a crazy world, but most shoppers aren’t that crazy yet!

W. Frank Dell II, CMC
W. Frank Dell II, CMC
8 years ago

Considering the number of butt telephone calls I get, I cannot see hands-free being a good thing. Consumers should make some kind of positive action to complete a transaction. Walking by a checkout is not one of those actions.

Lee Kent
Lee Kent
8 years ago

I would love to be able to run into a store and make purchases without having to dig around in my wallet, but…the real issue to me is the security. My mind continues to move in the direction of finger prints or something along those lines that do not involve a device with the potential for hacking.

That said, when I finally upgrade my iPhone, I am looking forward to Apple Pay. Hey, that’s my 2 cents!

Larry Negrich
Larry Negrich
8 years ago

Yes, hands-free mobile payment is inevitable. Consumers will come for the cool factor and stay once frictionless payment is the widespread norm. Lots is said about security concerns of consumers, but from actions it seems they don’t tend to care as the ramifications are shouldered by the retailers and credit operators.

Retailers will have to replace devices, but with positive benefit of speed of transaction in fast food and high-volume retail, that will not be big concern. This will lead the way, and the wave will force other retailers to join.