Google Wallet Product Launch

Uploaded by Google on 27.05.2011


STEPHANIE TILENIUS: Welcome everyone.
I'm Stephanie Tilenius and I run commerce
and payments at Google.
I joined Google a little over a year ago after spending
nearly a decade at eBay and PayPal.
And I joined Google to improve commerce for
businesses and consumers.
We are just getting started.
Today we have some exciting news to share with you around
mobile and local commerce.
If you remember nothing else from today, here is what we're
going to share with you.
Today we are announcing a couple of products, Google
Wallet and Google Offers.
We're extending an open invitation to merchants and
ecosystem partners, such as payment networks, carriers,
banks, to join us in creating tomorrow's best shopping
Now our belief is the world of commerce, not just e-commerce
but all commerce, is ripe for a new wave of innovation.
And we are announcing an open platform for mobile and local
commerce, which combines offers and payments at the
point of sale.
It makes it easy for partners and third parties to create
great consumer experiences.
And our goal is to bring together all the pieces of the
ecosystem and drive a great, brand new shopping experience
for everyone.
Your phone will be your wallet.
Just tap, pay, and save.
Now before we go into the announcements, I thought we'd
take a moment to step back and talk about why this is just an
amazing time for e-commerce.
E-commerce is growing like crazy.
In the US, e-commerce surpassed $227 billion in
2010, and it's poised to exceed $1 trillion by 2013.
So where's all this growth coming from?
Well initially, it was leveraging html and other
basic web technologies to essentially bring retail
online in a way that's very similar to the way we shop
offline today.
This started with Amazon and eBay in the 90s, and then
virtually every retail brand has invested in building an
e-commerce website, or a full business.
And more recently, luxury brands are also coming online
with Gilt and Vent-Privee and other services that are doing
private sales.
So you're literally seeing every retail brand, every
consumer merchant, every branded experience offline
come online.
Now at the same time consumer attitudes have changed,
literally practically 180 degrees.
10 years ago 70% of consumers would never pay online.
If you interviewed them they'd say that they were afraid of
doing that.
Today, over 70% of consumers transact online and access
their credit card information.
But even though all the brands are online and consumers are
very comfortable paying online, e-commerce is still
only 8% of total retail.
This means 92% happens offline in the physical world.
So why is this?
Well we believe the shopping experience hasn't yet been
transformed by technology or offered truly magical
With smartphones, geotargeting technology, and NFC, near
field communication, we are about to embark on a new era
of commerce where we bring online and offline together.

Now, changing how we pay for things will be a big part of
that new era.
The way people pay for things has not changed that much
since the dawn of commerce.
We went from barter to coin, coin to paper,
and paper to plastic.
Now we're on the cusp of the next major change.
Mobile payments is poised to grow fourfold in the next four
years from $170 billion in 2010 to $630 billion by 2014.
I'd like to introduce Ed McLaughlin from MasterCard to
talk about the evolution of NFC technology and payments.

ED MCLAUGHLIN: Thank you Stephanie.
And as is so often the case, the revolution in payments
that we're looking at, and the innovations that we'll be
talking about today, have been a long time coming.
In fact, it was almost a decade ago that MasterCard
first embedded a PayPass chip into a Nokia phone for some
trials that we were doing in Orlando and Dallas.
And that became the development of the standards
and the foundation for what we're seeing coming to
fruition today.
And moving beyond what you would see with a plastic card
and enabling safe, secure, and reliable payments.
So, what we're able to do is prove through those trials the
basis for the communication standards.
That we work together with an industry in 2003, for this NFC
foundation we're seeing leveraged today by Google.
Now, what we've done since then is continued to work on
the worldwide interoperability of all of this.
So a Google enabled phone can work anywhere in the world
that PayPass is accepted and enforce those standards that
are out there.
We've also been working closely with merchants, so
they can bring the speed, the convenience, and security that
contactless payments provide to their customers.
And the vision was always, how do we support form factors
beyond that square of plastic?
How do we move beyond plastic, whether it's to fobs, or
phones, or tapping your card itself.
And the great news is, today over 300,000 merchant
locations are ready.
Over a 120,000 in the US are ready to go for the Google
Wallet for payments.
Meanwhile, as we we're working to build out safe and secure
contactless payments, a revolution
has happened in mobility.
Smartphones have fundamentally changed how consumers interact
with mobile technology.
Next year, over half the phones sold are going to be
smartphone enabled.
And it's that new centricity, that new behavior, that's
profoundly changing our customers' experience.
So if you look at it, US mobile phone users, over half
of them, have already used their phone to shop online or
research purchases.
There was a recent MasterCard survey that said over 60% of
18 to 34 year olds said they would be perfectly at ease
using a mobile phone for in store purchases.
So that's why we're so extremely excited to work with
Google and our other partners to bring this vision to the
market, to enable the secure, safe, reliable PayPass
contactless payments combined with the incredibly compelling
shopping experience that Google Wallet, Google Offers,
and other capabilities of the smartphone can bring.
And it's really working together that we're going to
be able to truly transform the shopping experience by
bringing these powerful technologies and
standards to bear.
So Stephanie, can talk more about that.

So you can see we have an enormous
opportunity in front of us.
Really an opportunity to redefine
commerce and payments.
It won't just be online commerce or offline commerce,
it's all going to merge.
So here's how.
We are joining forces with Citi, MasterCard, First Data,
and Sprint, to usher in a new era of mobile commerce.
And in the centricity of this experience is it's mobile,
it's local, it's personalized, and it's open.
We believe 2011 and beyond will be the age of MoLo,
mobile local commerce.
So what does it look like?

Well let me give you the consumer example.
I go to the grocery store.
It welcomes me.
I've given my phone permission to know where I am at.
And up pops my shopping list based on what I usually buy at
the grocery store, it may also have some items that I have
scanned or tapped in the since the last time I went to the
store that I know I needed.
I shop and I find out, a notification pops up, that
there's this great apple pie that I love that I can get a
dollar off of it in aisle 8.
And it turns out the kalamata olives that I wanted for my
pasta sauce are out of stock, but I can actually just tap
online and have them shipped to my house the next day from
the merchant's web site.
So I continue shopping.
And I check out.
And when I check out, and I pay, I tap to pay and
automatically all the loyalty rewards that I get for being
part of the store's loyalty program are
credited on my account.
I pay.
And I get a receipt on my phone.
That's the consumer side.
Now on the merchant side, it goes beyond just this
You can imagine as a merchant you can acquire new customers
and offer discounts and rewards in ways that has never
really been possible before.
So you can provide offers to consumers, obviously with
their permission, based on location
and transaction history.
You can offer different levels of incentives tied to
different loyalty and spending levels.
And all of this leads to a much stronger relationship.

Now I want to stress that today we're announcing our
first steps in making this vision a reality.
It's important to realize we are just getting started.
This vision will take a while to come to fruition.
Our goal is to invest in technologies and platforms to
improve people's lives and help consumers
and merchants alike.
We are teaming up with Citi, MasterCard, First Data, and
Sprint to create an open mobile commerce solution that
enables consumers to find products and places, get great
offers nearby, and tap and save. So how are we going to
deliver on that vision?
Well as I mentioned earlier we had two announcements, wallet
and offers.
Let's start with wallet.

We are kicking off a field test for Google Wallet today,
and we will be officially releasing the
product this summer.
Now with Google Wallet, your phone becomes your wallet.
You tap, pay, and save money and time while you shop.
We're using NFC technology.
In fact, by 2014 50% of smartphones in the US will be
NFC enabled.
That's 150 million devices.
Now, for businesses Google Wallet is an opportunity to
strengthen the customer relationship by offering
faster, easier shopping with relevant
discounts and loyalty rewards.
So let's talk about what Google Wallet can do.
Google Wallet will support multiple cards.
From the get go, Google Wallet we provision with your Citi
It also supports a Google prepaid card that can be
funded from any of your existing credit cards.
And over time there will be more cards.
Now Google Wallet is also a wallet you can lock.
It's a lot more secure than the physical wallet you may
have in your pocket or your purse.
There are multiple levels of security.
There's the phone screen lock.
There's a required Google PIN.
There's the credit card which is encrypted, credit card
information is encrypted on a secure element in the phone.
And the credit card is never fully displayed.
Now Google Wallet works with MasterCard's PayPass network,
accepted at more than a 120,000 merchants in the US,
and 300,000 globally.
And we've partnered with MasterCard and First Data to
roll out in the US.
We are starting in San Francisco and New York, and
we're field testing and then we will expand nationally in
the coming months.
We are also working with the top retail brands including
Macy's, Subway, Walgreen's, Toys "R" Us, Noah's Bagels,
and many more.
Now, the other exciting thing about Google Wallet is it
makes saving simple.
Because Google Wallet's a mobile app it can store as
many deals and loyalty cards as you like without the bulk.
The first release will include support for payments, offers,
loyalty cards, and even gift cards, all with a single tap.
And that leads to my next announcement for today.
We're announcing Google Offers, which brings shoppers
great deals, and businesses more customers.
So offers will be delivered to your inbox as an
offer of the day.
You can also access offers via your mobile apps like Google
shopper and Google Wallet.
And the best thing about Google Offers is the way that
it works with Google Wallet.
In the future you find an offer you want, you save it to
your wallet with a click.
No more clipping or printing.
And to redeem offers you have two options.
You simply tap your phone at the merchant point of sale, or
you show the cashier your offer as you check out.
Now these programs will go live in Portland, San
Francisco, and New York this summer.
Now an offer of the of the day is really just
the tip of the iceberg.
We have many more types of offers that include check-in
offers, for example, when you check-in you get presented
with offers.
Offer ads, so when you see an ad in search you
see an offer ad.
Places offers, where merchants can include offers directly on
their Google Places pages.
So we intend to work across our properties and experiences
to include Google Offers where it's
most relevant to consumers.

So our objective is to bring the pieces together into a
single tap experience at retailers like American Eagle.
You pay, you redeem offers, and you earn loyalty rewards
with one tap of your phone.

Now, what else do you have in your wallet?
Maybe a driver's license, health care card, hotel keys,
boarding passes, maybe even concert tickets.
Eventually, you'll be able to put everything
in your Google Wallet.
I'd like to introduce Osama Bedier, our VP of Payments, to
show you a demo and talk about the platform.

OSAMA BEDIER: Thank you Stephanie.
What a great day it is to be here today.
And it's nice to see so many familiar faces, industry
leaders, and partners here.
Thank you for coming.
My name is Osama Bedier.
I've been innovating and pushing the limits in
payments, especially internet payments, for the last decade.
And I joined Google because I believe we're on the verge of
a major shift in payments, and therefore commerce.
And I believe that Google is uniquely positioned to partner
with, and bring together, the ecosystem necessary to bring
about that shift as well as accelerate it.
And it's important that this happens in an ecosystem way, I
don't think any one company can do it.
Now we've announced a grand vision and some compelling
product innovations.
But there are a lot of announcements these days.
This is not just an announcement,
this is a real product.
It's not just ideas.
It's up and running and merchants are
integrating as we speak.
We plan to roll it out this summer.
So I'd like to show it to you.
But before that, I'd like to thank the engineers at Google
as well as our partners who've worked tirelessly for over a
year bringing these innovations to market.
We wouldn't be here without them.
So let's get started.
Thank you.

I'm going to start with a fresh phone.
So, this is a Nexus S, we have a secure element, or a smart
chip, embedded inside it.
And there's a wallet application that I'm about to
open for the first time.

There we go.
The first thing you see is a tour, but you guys are going
to get your special tour, so we'll skip that.
And then I agree to the terms and conditions.

You know how that goes.
And the first thing it asks for is to attach my wallet to
a Google account.
This is important because it's a layer of security as well as
how we sync offers from all of our properties to your wallet.
Then it asks me for a PIN.
I enter a PIN.
This is the first thing I need to do.
Without it I can't use it to pay or access any of the
information in the wallet.
As soon as I do that I get presented with the option of
adding a credit card.
As you can see, you can add a Citi MasterCard.
If I click on that I simply a get form with a few
fields to fill out.
As soon as I fill out these fields I can provision a card.
But I'm going to show it to you not on a fresh phone but
my actual phone with my card.
I actually don't like leather wallets, so this is
how I hold my cards.
I hope someday I can put all of this in the wallet.
This is my credit card.
I have obviously blocked out the numbers, but this is my
actual credit card.
And I've pre-entered the information for my credit card
into my phone.
I'm sorry I can't show you the screen with the information
filled out.
I'm a security freak and this video is probably going to get
to a few places.
I entered the information and I'm going to click continue
here and it's starting to provision the card.
Let me tell you a little bit about what's happening here.

That screen isn't dark enough.
Let me tell you a little bit about what's happening while
it's provisioning.
So, the information I entered is sent to my bank, where the
bank verifies that information alongside the information that
they have stored for me in their records.
As soon as they verify that that's me, as well as the fact
that I should be able to provision that card to the
mobile wallet, they send it to a trusted services manager, in
this case First Data.
And the trusted services manager is uniquely qualified
through secure keys to communicate with the secure
element on that phone.
So they are the only ones that can actually
place a card there.
As soon as that process is complete, within seconds we've
provisioned an actual credit card onto a phone over the air
in seconds.
This is important because it is a world first, and it will
change the way credit cards are issued in the future.
So now we're going to go back to my credit card.
And as you can see, my card's been provisioned to the phone.
I actually can only use up to $100 until I enter a
activation code that I get through my email or SMS. I
won't do that now.
I can start using it immediately.
And that wallet it is now available in the wallet--
that card is now available in the wallet.

So, below it there's a little green icon there.
I could choose to activate or deactivate the cards in the
wallet, which brings us to the next card, the
Google prepaid card.
The Google prepaid card comes with every wallet.
You can provision it with a single tap and it allows any
user with a Google Wallet to be able to tap and pay at any
of the 300,000 PayPass locations locally.
I can click on that card, and I get a menu where I can add
funds from any credit card.
So I enter any credit card here and I can add funds to
that Google card.
And so there's definitely two credit cards in
the wallet at lunch.
I can also add other cards.
This is an open platform as Stephanie mentioned.
The idea here is to continue to partner and add cards to
the wallet.
Hopefully putting all of my cards in there.
It also brings us to this multiple payment
cards inside a wallet.
Up until now the contactless smart chips have only had one
card in a wallet.
We've enabled multiple cards in a single secure element to
be provisioned over the air.
This is a pretty big accomplishment, and it gives
us the ability to offer consumer choice, a very
important component of our wallet.
We want to allow the consumer to use all of the funding
methods or all the payment instruments that they'd like
in that wallet.
And this wallet can also be used without
having to be opened.
As a consumer I can set my preferences, as well as which
cards to be active or inactive, and they'll work
whether the wallet application is open or not.
Which brings us to the next point.
I can lock the wallet of course.
Security is very important to us.
It was a fundamental consideration from day one.
And so I'm going to ask Rob von Barron one of the first
engineers on the wallet product, without him we
wouldn't be here today.
He's going to come up and talk about security.
He spent a considerable amount of the last year building it.
C'mon up Rob.

ROB VON BARRON: Hi everybody, I'm Rob von Barron.
As Osama mentioned, I was one of the founding engineers on
the Google Wallet project.
I want to talk a little bit about some of the secret sauce
that we've added to the wallet to make sure
that it's really secure.
So, clearly, from the beginning of the project,
security was something that we wanted to make sure was
absolutely airtight.
We took the industry standard, best practices with PayPass
and smart card based payments.
We wanted to make sure we could add extra on top of that
to really protect consumers and protect their credit card
So, there are a couple of things that are
really key to this.
One, as you can see up here on this slide, is this smart card
chip, the secure element chip from NXP that's in the Nexus
S. So this chip is the same kind of smart card chip that's
used for electronic passports, for contactless and contact
based smart card credit cards, and it's got a lot of
protections built into it.
It's got tamper sensors so if you crack it open
it will self destruct.
It's got protection against laser attack, so if Doctor
Evil comes and tries to have a shark with lasers come and
steal your credit card, he can't get to it.
So, this chip has a lot of security baked into it.
And this is where we're storing the credit card
information to make sure that nobody can get it,
nobody can copy it.
So there's two pieces that are important about how
this chip gets used.
One, as Osama had mentioned, is this over the air
provisioning process.
In addition to just the credit card information that a user
types in, when you're doing OTA provisioning, the bank
sends some special secret sauce that identifies this
account in a way that is known only to the bank and to the
secure element.
It's provisioned securely all the way through, and stored in
this one chip, on the phone, not
accessible to anywhere else.
The second part of it is, how is this
used to make a payment?
That's the other part of communicating this account
When you go and you have your phone, you've got your Nexus S
phone here, walking around in the subway.
If I happen to have this in my pocket and the screen is
turned off, the NFC antenna is turned off.
Nobody can go and skim any information, they can't see
identifying information about me.
When the screen is on NFC is enabled, but the secure
element chip itself is turned off.
The secure element is only turned on when I actually
unlock the wallet and enable that for payment.
So, in addition to having the best possible secure chip so
that we're not going to be able to copy the credit cards,
it's stored inside a wallet that you can lock.
So with that I'll turn it back over to Osama.
See the rest of the demo.
OSAMA BEDIER: Thanks a lot Rob.

So we've talked about security.
We've talked about setting up your wallet.
I added my credit card.
Let's go shopping.
So on my way here my daughter said, please buy
me some denim shorts.
I said OK, I will do that.
I don't want to make her mad.
I'm going to go online and search for some denim shorts.

I'm going to type in denim shorts here, with a bit of

Actually I'll leave it at denim shorts so she's happy.
Look at that, 20% off anything in the
store at American Eagle.
What a great offer.
So I'm going to unlock my phone here.

Open up the wallet app so you can see
this, this is important.
And I'm going to go to the offers section of my wallet.
And I'm going to click on that coupon, which has saved to
wallet, a new feature we're adding.
As soon as I do that, back to the phone, as you can see the
offer showed up.

So, I'm ready to go save 20% off at American Eagle.
But as you can see, I'm a big guy, I get hungry.
I'm going to the mall so I'm going to go
look for offers nearby.
Subway, I like Subway.
$3 flatbread breakfast. Well, I like breakfast
anytime of the day.
So I'm going to save that to my wallet as well.
I'm going to go back to the saved offers in my wallet.

And here's my Subway coupon.

So, a lot of great stuff in the wallet.
Actually one more thing I want to show you.
I mentioned we can hold all kinds of cards, we also have
loyalty cards.
And so I've also added my American Eagle rewards card
into the wallet.
With all these great goodies in there, by the way I can put
other cards in the wallet, with all these goodies though,
let's go to American Eagle.
And we've invited Beth McCormick from American Eagle
to be here with us and help me with this demo.
Hey Beth, how's it going?
Good, good thank you.
OSAMA BEDIER: Thank you so much for coming.
BETH MCCORMICK: We are thrilled to be here.
OSAMA BEDIER: It looks like you brought some equipment
with you there.
This is a real point of sales system, just like we would
have in our stores.
OSAMA BEDIER: We wanted this to be as
close to real as possible.
This was not easy.
I got to tell you, it was so hard to bring a full point of
sales system.
There's actually a bunch of equipment over there that it
connects to, but we wanted to give you the real experience.
So, my daughter wants some shorts.
BETH MCCORMICK: Well we have shorts, we have denim shorts.
The best in the mall.
Here you go.


BETH MCCORMICK: She'll love them.
Trust me.
OSAMA BEDIER: I'll take your word for it.
BETH MCCORMICK: They're perfect.
Let's buy it.
I'm going to go over here and take the wallet with all the
goodies that I added earlier.
And then tap here, at the terminal.

What you'll see is it passed all three instruments over to
the terminal.
My credit card, the coupon--
just wait for it show up there-- the credit card, the
coupon, and my rewards card.

BETH MCCORMICK: I just need you to tap again please.
OSAMA BEDIER: OK, let me try that.

OSAMA BEDIER: As you can see it passed all three again.
BETH MCCORMICK: OK, at the point out of sale you see the
AE rewards number is at the top of the screen and we have
the offer that is pending.
And I will complete the transaction.

You see the offer is calculated, it's authorizing.

And I just need you to finish the transaction and
we're good to go.
So I'm going to go to the terminal here and just finish
the transaction.

There we go.

I won't show you my signature.

BETH MCCORMICK: Thanks so much.

OSAMA BEDIER: And that's how simple it was.
Now we call that single tap.
And I'm going to invite another key engineer, one of
the founding engineers on the Google Wallet project,
Jonathan Wall, to come and talk a little bit more about
how we did it.

JONATHAN WALL: Hello, I'm Jonathan Wall, the other
founding engineer of the Google Wallet project.
And I'd like to talk to you guys a little bit about single
tap technology today.
We think this is one of the more powerful innovations that
we've built into the wallet.
So I'd like to get into the nuts and bolts of how this
works and describe how we think this is really going to
power this open commerce ecosystem in the future.
So the way this works is that when you tap your phone to the
merchant's point of sale system, it opens multiple
secure channels to the merchant's
point of sale system.
And what this lets us do is send in one single tap
transaction, multiple objects to the point of sale system.
So, in the demo you just saw, we sent an offer, a loyalty
card, and a payment card.
And this all happened quickly and easily.
So at launch we're going to be using the
usual suspects of commerce.
We're going to launch with gift cards.
We're going to launch with loyalty cards.
We're going to launch with offers.
And of course, payment cards.
But we think as for a lot of the wallet features, this is
just the beginning.
This single tap technology is something we're going to keep
investing in and we're going to keep innovating on top of.
And we think that this will give us the ability to add
really deep, differentiated experiences between consumers
and merchants.
So coming this fall we're going to be introducing some
cool features.
The ability to pass digital receipts back from the point
of sale into your wallet, so that you don't have to have
wasteful paper you throw away anyway.
And also the ability to dynamically create cards.
So if I tap a merchant, say Peet's for example, every
morning I'm getting my coffee.
After a while Pete's could suggest to me, hey John you're
buying coffee here an awful lot, why don't you sign up for
our loyalty program to get your tenth coffee free.
So these are really obvious things for us to do next.
But, I think that it's kind of wide open where
we'll go with this.
We'll definitely consider having game dynamics added to
loyalty instruments.
So there might be games in the wallet and pieces to a puzzle
or a board that you get back in your wallet
when you tap and pay.
And really the sky's the limit with this technology.
So with that I'd like to hand it back to Osama and just say
we hope to bring a better experience
all in a single tap.
OSAMA BEDIER: Great, hey thanks Jonathan.

OK, I'm going to take my phone.

And got my shorts for my daughter,
she's going to be happy.
And I'm walking out of the mall, and I see a poster.
Macy's, my wife loves Macy's.
And it's got an area where I can tap for a coupon.
So, I'm going to tap here with my wallet.
And this coupon shows up in my wallet.
I'm going to say save. And now it's available in my wallet.

So we've shared how a digital wallet can make shopping
experiences much more compelling.
And we've shown you a real live working product here that
merchants are integrating today.
But this is just the beginning.
We plan to continue to push the limit and
innovate in this space.
And we'd like to show you a short video
what that could like.

OSAMA BEDIER: So, now that you've seen our vision, our
product, our partners.
We would like to extend an invitation to all of you.
This can get a lot better.
As I mentioned this is just the beginning.
We want to invite banks, carriers, merchants, POS
systems providers, to help bring about these richer
Help us usher in the next era of open solutions that add
value for all players.

We're building an open commerce ecosystem.
And Google Wallet is built on top of that open platform.
By the way, open is who we are at Google.
It's a deep part of our culture, a part of our
history, and we know that open solutions add
value for all players.
Open systems drive competition, innovation,
deliver consumer choice, and most
importantly, exponential growth.
We focus on the user and all else will follow.
That's what you hear us say all the time at Google.
And you see it in our products.
Android already has 100 million phones in market.
And we're activating over 400,000 phones a day.
You see it in maps.
You see it in Google app engine.
And we're very excited to bring it in a wallet context.
So what does an open wallet look like?
Well, we're starting with wallet objects, cards that you
put in the wallet.
Of course you see the first important instruments in the
wallet today.
It's the backbone of commerce, it's the things that make
commerce happen.
And we've worked with the major players in these
industries to bring it out together.
But we plan to aggressively enable everything a consumer
would want to put in their wallet.
And allow any instrument or object into that wallet as
long as it plays by the rules and allows
for a healthy ecosystem.
We don't charge for access to this wallet.
The wallet is free to partners.
And our goal is to level the playing field so no one has an
unfair advantage and even small businesses like your
local cafe, your florist, or your bookstore, can put offers
and loyalty programs directly into that wallet.
We plan to create APIs so networks, banks, retailers can
And work with partners to promote open standards that
benefit consumers and merchants.
Security, as you've seen and heard, is a fundamental
principle design consideration.
It will color how we develop and open up that platform.
We want it to be as open as possible, as long as we don't
sacrifice on consumer choice or security.
And we're here with our launch partners.
And I'd like to extend a warm greeting to those colleagues
from Citi, MasterCard, First Data and Sprint.
And they're going to join me here on stage one by one to
share a bit of what they think about this.
We're going to start with Paul Galant from Citi.
Thank you Paul.
PAUL GALANT: Thanks Osama.

Thank you, thank you.
Osama, I'm pretty sure you didn't need to introduce me as
the banking partner given my banking costume stands out
here in Google's New York office.
But having said that, today marks an important milestone
in digital and mobile banking.
Citi is proud to be the lead bank at the launch of Google
Wallet, playing a key role in bringing valuable services to
today's busy, on the go consumers.
We're proud to be at the forefront of this key
milestone by being the first bank to lead the wide
commercialization of NFC payments in the United States.
And it is indeed a privilege for us to be here today on
stage with the great collaborators that we have
from Google, from MasterCard, from First Data, and Sprint.
I want to stress and leave you with three key messages that
are really important.
First is the strategic importance to Citi, and in
fact the entire banking industry, of digital money and
mobile payments.
Citi has a long and successful history of innovation and
partnership with great firms around the world.
Today's Google Wallet announcement supports Citi's
position as a global leader in payments and brings to life
our CEO Vikram Pandit's vision for Citi to be the world's
digital bank.
Most important of all, our collaboration and role in the
Google Wallet is another illustration of how Citi is
working to enhance our customers' experience through
innovation, through security, value, and convenience.
All supporting our deep commitment as a bank to
responsible finance.

In just the last year Citi has launched a number of
innovative consumer banking solutions around the world
including an integrated cards and bank application for
Android and other smartphone devices, Citi text banking,
and Citi social media customer service via our official
Twitter handle @AskCiti.

In addition, a first of its kind US flagship Citibank
branch was opened just this last December in New York
city's Union Square area, just a few blocks away from here.
It features the most unbelievable interface for
consumers that you'll find in the world.
Smart banking technology such as interactive service and
media walls, enhanced image ATMs, free online and wireless
access for customers, and so much more.
If you want to see the future of branch banking come visit
the Citibank branch in Union Square.
I think you'll enjoy it.
The second very important point that I want to make is
about the increasing convergence of banking,
technology, and information in creating customer value and
new business models globally.
With today's announcement, Google Wallet provides Citi
customers with an important new dynamic channel for
evolving mobile banking offerings.
And we're committed to leveraging this state of the
art technology to deliver powerful tools in a tangibly
better and rewarding customer
experience for Citi's consumers.
Google Wallet represents true innovation and a technical
collaboration between Citi and the partners that have come
here today.
Folks, our engineers have worked tirelessly, and I mean
tirelessly, round the clock and seamlessly with Google
engineers to connect Citi's core industrial strength
banking capabilities and engines to Google Wallet's so
our customers will have a greater convenience and
control with respect to managing
their day to day payments.
We wouldn't be here today without their steadfast
dedication to excellence demonstrated by the
development teams. I think Citi's remarkable engineering
work enables the commercialization of an
intuitive customer payment solution that allows our
consumers to make payments as easily as our customers make
phone calls or send text messages on their smartphones,
and that's real innovation.
Today we're announcing Citi's collaboration with Google
Wallet for one simple, but very vital purpose, to help
improve and simplify the everyday lives of consumers by
bringing them real value, enhancing their shopping
experience, and helping them better manage their money.
Our customers are busy.
They're often using their smartphones for everything
from finding a great place to eat, to searching out the next
great kid's toy.
Well starting today, they can use that same
device to pay for it.
And I think that's progress.
My final point is on the significance of today's
It's widely accepted, and in fact I think my partners have
spent some time talking about it, that we're really just at
the starting point of mobile payments capabilities.
And in time, there will be numerous systems made
available to the billions of cell phone
users around the globe.
But there can be no doubt that today's announcement will be
looked at as the inflection point of how mobile payments
have evolved from a concept to mass consumer adoption.
Today it starts.
We're already engaging with Citi consumer, corporate, and
government clients around the world in both developing and
emerging markets about mobile payments and helping them to
use this great new technology.
We see this is as a starting point for all the new ways
that we will grow and evolve together.
And I want to thank all of you for coming here today.
And with that I'd like to turn it over to my partner Ed
McLaughlin from MasterCard.

And to pick up a theme from Paul, it seems that whenever
anything truly innovative comes to the market there's
always lots of speculation around things like
But that's really not what we're talking about
here today at all.
It's about intermediation.
It's about bringing together industry leaders to leverage
their mutual strengths to create absolutely compelling
capabilities for card holders and customers.
And we see MasterCard at the heart of commerce.
With our network bringing together hundreds of millions
of consumers, and tens of millions
of merchants worldwide.
And at the heart of MasterCard is our network.
Where we're bringing to this partnership the fastest, most
intelligent payments network on the planet.
If you've used MasterCard you know we're processing billions
of transactions literally in the blink of an eye.
And every MasterCard user understands the reliability
that we present.
But more than just the speed and reliability, we think it's
the intelligence the network that truly sets us apart.
If you look at things like our MasterCard in control
technology which provides real time communication globally
between the card holder and the payments network itself so
it can able things like alerts, coupon redemption,
true personalization of that account for
the individual consumer.
So we see the wallet as an incredible example of
combining the intelligence that you can have on a
smartphone, the speed, and reliability, intelligence
that's in the MasterCard network.
We're also leading the way in the design, the standards, and
the certification of PayPass and the equipment that brings
the mobile ecosystem to life.
As I said earlier, PayPass brings the power and
intelligence to the network to consumers, at thousands of
merchants today, all ready to go for the Google Wallet.
And what we've absolutely seen since this first PayPass
trials in 2002 that I talked about, is once consumers
experience the speed and convenience of tapping, they
never go back.
It is a fundamentally better experience, and one that we're
looking to enable.
So today as we said there's over 100,000 merchants ready
to go for the Google Wallet.
And I'd like to bring Ed Labry up from First Data to talk
about what we're doing together to help expand that
merchant footprint.
Thank you.

What an incredible day in the history, and also the future,
of payments.
I am Ed Labry, I'm the president of
First Data North America.
And I have been in the industry and at
First Data for 27 years.
This really on behalf of all 25,000 employees of First Data
worldwide, I'm really excited of what we have going today.
I don't think anybody that follows payments ever thought
that this day would not happen. it was never a
question of if, it was when and who was going to bring it.
I know I speak for all the companies, all the product
teams that are listed right behind me in saying we're
really proud to be here all together.
Payments is a herd mentality.
I think that when Diners Card was a slide earlier, it made
me think 1950, just about everybody in this
room was not born.
But I think there's some things that are very relevant
to the payments industry that we can all think about.
Think about 1989, you could not use your credit card in a
supermarket in the United States.
Now over one half the payments in supermarkets are
In 1993, you could not use electronic payments
to pay at the pump.
Those of us that buy gas, you will not stop and buy gas if
they don't have pay at the pump.
And in 1999, the thought of putting electronic payments in
quick service restaurants was a little bit ridiculous.
And now every quick service restaurant chain has
electronic payments.

All right, I want to introduce you to First Data's ecosystem.
So, very simply, First Data has about four million
merchant locations in the United States where we process
electronic payments.
And also, we have relationships with 7,000
financial institutions to provide their card processing
and [? around ?] network services.
Now, nobody's ever heard of First Data unless you're in
the payments industry.
But we process 40 billion transactions a year.
So whether it's your airline tickets, your hotels, your
rental cars, your restaurants, your coffee you buy, more than
likely on the day to day basis,
you're using First Data.
And we think our strengths are this.
We bring definitely the commitment to innovation to
the payments industry as illustrated by our TSM m
technology today.
We bring relationships.
We've been in the business over 40 years and have
relationships with the most name brand recognized
retailers and financial institutions, such as Citi, in
the industry today.
We bring product.
So you think about 80% of the stand beside point of sale
systems in the United States are provided by First Data and
now will be NFC enabled.
We bring processing, so all the numbers I mentioned a
minute ago represent over 50% of all the financial
transactions in the United States are
processed by First Data.
And also, we have over a billion prepaid cards on file
with the largest name brand retailers in the
United States today.

So I'll try to simplify this a little bit.
I agree with Stephanie.
We have a vision that everything, if we dumped out
everybody's purse and did out everybody's wallet, everything
would migrate into the Google Wallet one day.
But it's simply this.
We house 700 million cards, card numbers
on First Data system.
Today they are on pieces of plastic, mostly in your
wallets and purses.
It is simply this, we take those 700 million card numbers
and provision them over to the TSM which will enable the
phone to be used at our four million merchant
locations and beyond.

So it hit me a little while ago when we were talking about
this is a pilot and what we're doing.
And there's a lot of companies out there in the marketplace
that have talked about the vision, or the collaboration,
or we'll be doing this one day, or these are our thought
processes and our commitment to mobile commerce.
I got to thank all the companies for coming together,
especially the product and engineer groups.
You're going to make us very, very proud today.

But this is not something that is vapor.
That phone Osama just provisioned, when we go to the
cafeteria it can buy Coke.
It can be used across the street at the two merchants
that are there.
Over the last three weeks First Data sales force has
enabled 1,000 merchants in the city where this phone, and
phones excuse me, can be used.
So thank you very much and we look forward to
this program growing.
And it is my pleasure to introduce, I'll get it, hang
on a second.
Fared Adib, the chief technology officer at Sprint.
Thank you.
FARED ADIB: Thank you.

I give him a lot of credit, it is a hard name to say.
This We'll hopefully have Google
develop an app for that.
Thank you for having us.
We're really delighted to be here from Sprint.
And being one of the founding carrier partners in this open
alliance that you see here today.
We have a long history at Sprint of working together
with our partners at Google, and we're really happy about
the partnership.
In fact to give you some of the history, we were one of
the founding charter members of the open handset alliance
for Android.
As well as we launched the first 4G
Android device in America.
And more recently, we just recently launched this device
that you're seeing all the demos, the Nexus S 4G.
It's a pure Android experience.
And we also recently integrated Google voice for
our customers so that our customers can use their Sprint
numbers as their Google voice number.
So for us the open philosophy is a way of living, it's
really not a choice.
In fact, a lot of open, really to stress what Stephanie and
Osama have been saying, is really about democracy.
It's something that we all as Americans very much
and What it really does is it allows for choice.
We really at Sprint believe that a carrier should not
dictate your experience on your phone.
That choice, that experience should be provided to you from
the names and the brands you trust, like Citi, and
MasterCard, and First Data.
And so for us, we believe that a carrier should really help
enable that, and not dictate it.
So, one of the things that we are really excited about the
Google Wallet is being able to be one of the first carriers
to provide this source of choice for
our 51 million customers.
And part of the way we're going to do that is we're
going to continually integrate this technology that you saw
today and work with our OEM partners like Samsung, HTC, as
well as Motorola's of the world, and others to try to
make sure that we become a good bridge on making sure
this technology works on those devices.
Now it'll take some time for it to proliferate through our
entire portfolio.
But on day one we had the Nexus S 4G which is one of our
top selling phones today at Sprint.
People are just absolutely happy with this product.
And part of it is that it allows them to have this type
of open experience.
In fact Android is our fastest selling platform in our
product portfolio.
Over 75% of the sales that we have today come from the
Android market space.
And we're very heavily invested in this space
because, again, it aligns very well with our strategic
initiatives and I believe with most of the strategic niches
of most of the companies and merchants out there.
So, again I just want to keep this short and close by saying
we're very excited about this opportunity and we really want
to thank the Google team.
They've just been so delightful to work with.
If any other company really wants a testimonial on that
please come talk to us, because the amount of
collaboration and easy to work with attitude that all these
companies have had has just been phenomenal.
And that's really part of it as well.
You have to be able to work together in an ecosystem and
be able to collaborate for it to be successful.
And we look forward to be standing here in a year from
now and really looking at the successes of this endeavor.
So thank you very much.

STEPHANIE TILENIUS: Well, wow, lots of exciting news.
I want to thank our partners.
And I want to thank all the merchants in the room.
A lot has happened over the last year.
And special thanks to all the engineers, product managers,
sales folks, marketing folks, sales integration team, I mean
this has been an incredible run.
And we're just getting started.
And in addition to all the partners that we've talked
about today, we are here with some of the best retail brands
in the country.
We've pulled together a short video to show you who's
working with Google Wallet and give you their perspective.

-What the consumer's looking for today is fun shopping
experience, but she also wants it simple and easy.
And I think we accomplished both with Google Wallet.
-In the US alone we have over 30 million customers that come
through our restaurants each week.
The ability to use a technology like Google Wallet
to help improve the customer experience for those 30
million people that come into our restaurants
is critically important.
-We're a fun store to shop in.
We want our customers to enjoy the environment.
That's what I think Google Wallet can bring to American
Eagle as well.
-I think it is game changing from an
experience point of view.
When you think about a customer walking into a store
they now have information at their fingertips, value at
their fingertips, things that didn't exist before.
To me Google Wallet organizes someone's personal data in a
way that's much more secure and it actually gives them the
ability to take less things with them when
they leave the house.
Google wallet will improve the shopping experience.
It'll make the transaction faster and easier.
It'll do it in one touch on the tap of her phone.
It's amazing.
It's amazing for the customer.
It's going to change how people shop, how they want to
pay, how they think about going to the stores.
And it's going to happen fast.
No one says, oh good I get to go check out now.
Anything we can do to make that process faster, and
simpler, and easier for the customer is going to help them
and help us in the long run.
Value is no longer lowest price, it's what people value
And this obviously allows us to talk to a consumer in a one
to one relationship on the things that they value most.
They could be walking down the street thinking about lunch,
type lunch into their smartphone, and instantly
receive an offer from Subway.
Once they're in the restaurant, they go through
the ordering process as they typically would, but at check
out they basically are able to tap to pay.
Moves them through more quickly and gives them a
better customer experience overall.
So Google wallet really allows us to create that one to one
relationship in a meaningful way with the consumer on
things that matter most to her.
The idea behind Google wallet is that if now we've offered
her a much easier way to transact with us, it will keep
her in the store longer, and hopefully, have
her shopping more.
We do see incremental sales coming from our participation
with Google wallet.
We think it's going to be a home run with customers and
very important to the Subway business moving forward.
Yes we're going to launch something
that's going to be great.
It's going to be cool.
It's going to be exciting.
It's going to be very usable.
It's going to be customer friendly.
But what's the next step?
What's around the corner?
And that's what excites me the most.
STEPHANIE TILENIUS: I am thrilled that all our friends
at Macy's, American Eagle, Container Store, Walgreen's,
and Subway are excited about Google wallet.
And many other merchants that have signed on.
We want to invite merchants everywhere to come on board.

So let's recap where we are.

Google wallet and Google Offers will help create a
great shopping experience for consumers, blending online and
offline and bringing great convenience and savings.
They will help merchants build stronger relationships.
And Google wallet is built on an open platform, so any
partner can participate.
And as the ecosystem comes together, we hope to take
advantage of all the great technology that's available to
us to transform shopping.
So today we're field testing Google wallet, and we expect
to release this summer.
And as Fred mentioned in the video, we are really excited
about what's around the corner.
And with that I want to thank everyone for coming today.