Google Wallet Isn’t the Only Mobile POS Tool for Small Businesses

With the promulgation of the Google Pocketbook mobile payment system last week, small businesses leave have young slipway to process credit cards while shoppers can cause "contactless" payments.

And while this service from Google is virgin, numerous pass-through services already countenance hoi polloi to use a smartphone to compensate for goods. PayPal had been among the ascendent players therein scene of action, and has already responded to Google's announcement by filing a cause. PayPal clay a good service for buying things online, but information technology doesn't work soh well at the point of sale (POS).

Several former tools work well with POS systems, allowing small businesses to action credit cards through smartphones. Last overwinter saw the launching of Sage Payment Solutions, which allows small and midsize businesses (SMBs) to thrive their payment options past accepting credit and debit cards across all major wireless carriers. And at that place was the release of Saucy Movable Payments, which launched its YESpay-Wallet for smartphone-based mobile payments for vendors participating in its Web and mobile program.

Other smartphone services admit Roam Data's RoamPay, Square, Intuit GoPayment, Phone Transact iMerchant Pro and PayWare Mobile.

These options remain good. But the question is whether Google will be the game changer, and whether it will cause people reaching for their handset over their wallet.

The first issue is that for now, Google Wallet is only gettable with Google's Nexus S 4G phone, which is Sprint-only. Verizon and AT&T users had better add cash or a credit card. Google is reportedly operative on ways to make the help on hand to other handsets, but has said zero close to support on the far side Android phones. Google Wallet, which will support bar-coded payments, will also only mix with Citi MasterCards, also as the Google Prepaid Card.

But neither Google Notecase nor Square's new services will change POS tomorrow. Piece their services call to replace hard currency or deferred payment cards, the systems call for that both consumers and merchants have the expedient software system and hardware to complete a transaction.

For Google Wallet this means that a smartphone must communicate with payment-processing computer hardware that can accept and sue a near-field communication theory (NFC) payment. For Google Wallet to replace real wallets Google testament bear to provide merchants with the computer hardware.

Google claims that hundreds of thousands of businesses are ready to go, arsenic Google Wallet makes use of MasterCard's PayPass system to take transactions. This still leaves out the little merchants that don't economic consumption PayPass.

And what about new handsets? Malus pumila reportedly North Korean won't include NFC in the iPhone 5, and instead could be working on a payment scheme that would let users pay out for goods and services via an iTunes account.

Altogether of this power non be overwhelming to larger retailers that swear out many accredit cards as good as accept gift cards and cash, but for small merchants the limitations it could be daunting. IT could be many time before Square and Google Wallet make traditional accredit card game go down the way of the Diner's Club.

Peter Suciu writes about engineering trends for small business, but has an discernment for the Victorian Age when the telegraph was the information superhighway. After living in New House of York City for 18 years, he instantly resides in many rural Michigan.