Is Google getting ready to launch a mobile payment service?

According to those in the know, Google is considering building a payment and advertising service that would let users buy milk and bread by tapping or waving their mobile phones against a register at the checkout. The service may make its debut this year according to anonymous sources. The system will be based on near-field communication (NFC) technology, which can beam and receive information wirelessly from 10 cm away.

Google joins a whole range of companies that want an in on the NFC market, and which may account for a third of the $1.13 trillion in global mobile-payment transactions projected for 2014, according to IE Market Research. In November, Verizon Wireless, AT&T, and T-Mobile USA formed a venture called Isis to offer an NFC-based service in 2012. Visa is testing contactless payments and planning to roll them out commercially in mid-2011, says Bill Gajda, Visa's head of mobile innovation.

"It's a land grab," says Jaymee Johnson, a spokesman for Isis. "Folks are sort of jockeying for position." "

EBay's PayPal may start a commercial NFC service in the second half of 2011, says Laura Chambers, senior director of PayPal Mobile. The system would also power peer-to-peer NFC transactions. For example, a restaurant patron might beam his share of the bill to his dining companion's phone. PayPal is open to partnering on NFC payments with companies such as Google, Chambers says.

Speaking about NFC at a technology conference in November, Google Chief Executive Eric Schmidt said, "You'll be able to walk in a store and do commerce. You'd bump for everything and eventually replace credit cards." Andy Rubin, Google's vice-president for engineering, declined to comment on future services and products.

A single NFC chip on a mobile phone would hold a consumer's financial account information, gift cards, store loyalty cards, and coupon subscriptions, say the people familiar with Google's plans. Users may also be able to make online purchases from their phones. By scanning a movie poster, for instance, a consumer might read reviews and use the Google service to purchase tickets.

"NFC could displace the cash register," says Charles Walton, chief operating officer for NFC chipmaker Inside Secure. "This is going to come superfast."

Google may be in a good position to disrupt the payments industry because merchants and consumers already use its technology widely. Some 300,000 people activate phones daily that use its Android software. On December 6, Google released its newest version of Android, called Gingerbread, which has some NFC features, such as reading information from NFC tags. More functionality "will come out pretty quickly," says Google's Rubin. On the market since December 16, the NFC-enabled Nexus S phone, developed with Samsung Electronics, will serve as a test for a Google payment and ad service, says one of the people knowledgeable about Google.

Last year, Google bought Zetawire, a Canadian startup with a patent on a way to combine a phone-based wallet with a reward-and-loyalty system. Google Ventures, the company's venture capital arm, also invested in Corduro, a closely held developer of mobile-payment solutions in Southlake, Texas.

Philippines remittances may top $20 billion

Remittances channeled through banks by migrant Filipino workers may exceed $20 billion this year, Bangko Sentral, the central bank said over the weekend.

Bangko Sentral Deputy Gov. Diwa Guinigundo said the bank saw money remitted by the workers increasing by about 8% in 2011, matching the projected 8- percent growth in 2010.

“But we have to review that,” Guinigundo added.

Remittances in 2010 were projected to reach $18.7 billion, based on the 8-percent growth assumption from $17.3 billion in 2009.

Data showed that remittances in the first 10 months of 2010 rose 7.9% to $15.5 billion. The bulk of the remittances came from Filipinos living or working in the United States, Canada, Saudi Arabia, Japan, the United Kingdom, United Arab Emirates, Singapore, Italy, Germany and Norway.

A projected 8-percent growth in remittances in 2011 will bring the total to $20.196 billion this year. The projected figure represents only those captured by banking channels.

A local bank also expects remittances to grow 5 to 10 percent this year. “Consequently, this could continue to underpin consumer spending which accounted for about 78 percent of the Philippine economy,” said Mike Ricafort, assistant vice president and head of domestic and global research of Rizal Commercial Banking Corp.

Bangko Sentral said the deployment outlook for Filipinos overseas remained upbeat given the continuing bilateral talks with some host countries, aimed at matching manpower requirements with the competencies of Filipino workers.

Remittances, which contribute more than 10 percent to the gross national product, are expected to help the economy achieve strong growth this year and support the appreciation of the peso against the US dollar.

Guinigundo said the peso was expected to trade at 43 to 45 against the US dollar this year while the gross domestic product would grow within a range of 7 to 8 percent.

RCBC, meanwhile, expects the peso to range 41.50 to 43.50 against the US dollar by December this year.

Remittances are seen to keep the country’s balance of payments in a surplus in 2011, although this would not be as strong as the $13.2 billion recorded in the January-November period last year, Guinigundo said.

The recovery in imports this year is seen to result in a wider trade deficit and a narrower BoP surplus, according to the government’s economic managers.

Exports in 2010 grew faster than imports, translating into a lower trade deficit. Total imports in the first 10 months of 2010 grew 26.3 percent year-on-year to $44.826 billion while exports surged 37.2 percent to $43.084 billion.

My Blackberry is not working!

And you thin that you have problems? Just to get the New Year off to a relaxed amusing start. Enjoy!

Happy New Year

We want to take this opportunity of wishing all our clients, supporters and friends across the globe a happy 2011 – Happy New Year from “The Team” at Citadel Advantage.

Uganda’s remittances set to hit Shs2 trillion - Bank of Uganda

Dr David Kihangire, the Bank of Uganda executive director, has said Uganda will this year receive Shs2.2 trillion up from Shs1.7 trillion received last year from Ugandans working abroad.

“Projections show that remittance in 2010 will amount to $980.9 million (Shs2.2 trillion)” Dr. Kihangire said recently at a conference aimed at encouraging Ugandans in the Diaspora to invest back at home.

He attributed the increase to the number of Ugandans going to work abroad and the fact that majority at work, have not lost their jobs despite the global recession in the last two years.

A report by the World Bank; “Migration and Remittances Factbook 2011” released in November attributed the increase in remittances to the global economic recovery, which has resulted into job stability and new jobs for millions of immigrants from developing countries.

Globally remittances are expected to reach $440 billion up from $416 billion in 2009 according to the report. “Remittances help in time of crisis and distress. Remittances impact on poverty and welfare through a multiplier effect,” Dr Kihangire told participants at the 4th annual Diaspora Home is the Best Summit in Kampala yesterday.

Most of those working abroad send home money to friends and relatives for education and health purposes with little going to investment activities according to BoU.

The remittances mainly originate from Europe and America according to a recent BoU survey. “In Uganda, 50 per cent of remittances recorded have been used for education and health expenses. 40 per cent is attributed to savings and investment while 10 per cent goes to social activities,” he said.

TRAINING COURSE – INTERNATIONAL PAYMENTS

Tel Aviv, Israel – 11 & 12 May 2011

This is an intensive 2-day primer for payments professionals on International Payments and has been tailored for payment professionals, either in commerce or banking who need to gain a closer understanding of International Payments.

The course provides them with a comprehensive foundation for understanding payments in a global context, covering the key principles, concepts, infrastructures, practices, issues, and current developments.

This course will be of especial interest to payments professionals who wish to expand their knowledge base and advancing their careers into the global payments arena.

For a fully descriptive brochure please send a blank e-mail to sharon@citadeladvantage.com with INTPAY-TA in the Subject line.


Who should attend?

Banking, treasury, risk management, legal and compliance, back office and operations professionals who wish to expand their knowledge base into the global payments environment.

Staff from Financial Institutions, Investment Banks, and Central Banks/Payment Systems Operator Organizations, Clearing Houses, Consultancy Groups, Legal Firms and Regulators who regularly deal with:

• Foreign Exchange
• International Payments
• Remittances
• Retail and Wholesale Payments
• Electronic Payments and Payments Processing
• Clearing and Settlement
• Securities Settlement
• Financial Control
• Risk Management and Operational Risk
• Treasury
• Auditing and Compliance

Course Venue:

REGUS Tel Aviv Ramat Gan - Ayalon House
Ayalon House, 16th Floor
12 Abba Hillel Street
Ramat-Gan 52136
Tel: +972 3 754 1111

Want to know a little more about Tel Aviv, the venue for our May International Payments Course?

Please join us for a quick tour – CLICK HERE

TRAINING COURSE – ADVANCED OPERATIONS RISK

Johannesburg, South Africa - 6 & 7 April 2011

Full course details will be available shortly.