So we’ve all heard about Apple Pay and Google Wallet by now, but what exactly are they and how do they differ. The short answer is they’re both ways to pay from your cell phone at brick-and-mortar stores – meaning you won’t have to swipe an actual credit or debit card. They have their nuances and differences, but for the most part, they’re “contactless” forms of payment that are about to change how we shop forever.
Google Wallet has been around for a few years while Apple Pay has just recently gone live in the new iteration of Apple’s flagship phone – the iPhone 6 and 6-Plus. While there are many small differences in the two payment methods, here’s a quick overview of the most notable ones:
Similarities
- NFC – Both are powered by Near Field Communication technology, meaning they don’t have to have contact with a POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. terminalThe device by which a transaction is transmitted to the acquiring bank..
- Debit and Credit – Both can host credit and debit cards, aside from some variations listed below.
- Tokenization – Both also use tokenization, which is the randomization of authorizationThe request to charge a cardholder for goods or services. Authorization must be settled in order to post the authorization to the cardholder’s account. If not processed within a certain time frame authorizations will be cancelled. The time period is usually from 3-7 days.... when submitting payment, something that current cards with magnetic stripes don’t have but the new standard of chip-and-PIN EMV (Europay, Mastercard and Visa) does have (for more, click here)
Differences
- MerchantA business that accepts credit cards for goods or services. access and visibility – this is probably the biggest and most important difference of the two
- Apple Pay – Does not give any merchantA business that accepts credit cards for goods or services. access to consumers’ purchases
- Google Wallet – Google can see payment history and purchases
- AuthorizationThe request to charge a cardholder for goods or services. Authorization must be settled in order to post the authorization to the cardholder’s account. If not processed within a certain time frame authorizations will be cancelled. The time period is usually from 3-7 days.... – both use tokenization, but with different methods
- Apple Pay – The customer hovers their iPhone 6 or 6-Plus above the NFC terminalThe device by which a transaction is transmitted to the acquiring bank. and uses a tap of the screen, or fingerprint, to verify the payment
- Google Wallet – The customer brings their Android device near the NFC terminalThe device by which a transaction is transmitted to the acquiring bank., wakes up their screen and types in a PINPersonal Identification Number used by a cardholder to authenticate card ownership for ATM or debit card transactions. The cardholder enters his/her PIN into a PIN pad. The PIN is required to complete an ATM/debit card transaction. number
- Availability – as mentioned above, some differences in how you can use the two services differ
- Apple Pay – Currently, you can only use Apple Pay on the current version of the iPhone – the 6 and 6-Plus
- Google Wallet – For Non-NFC devices: anything running Android Gingerbread 2.3 or iOS6 (or higher) and for NFC devices: Android KitKat 4.4 or higher
So the conclusion we can draw from the early stages of these two payment options is the Apple Pay is a bit more practical at the POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. terminalThe device by which a transaction is transmitted to the acquiring bank. and keeps your information more private while Google Wallet takes a little more work but is available on many more devices as of today.
There will probably never be a clear-cut winner in this battle, but it will be fun to see the tweaks and adjustments made by Apple and Google in the coming years. Tell us what you think about NFC payment, Apple Pay and Google Wallet on Facebook and Twitter.