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TechGoogle

Google is testing hands-free payments with McDonald’s and Papa John’s

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Leena Rao
Leena Rao
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By
Leena Rao
Leena Rao
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May 28, 2015, 7:48 PM ET
Android Pay
Courtesy of Google

Google is testing a futuristic way for shoppers to pay for what they buy without having to take out their wallet — or even their phones.

The technology, known as hands-free payments, is supposed to make paying in stores that much easier. All a customer has to do is download an app onto their phone. When checking out at a store, all they have to do is stand in front of the cash register and say their name to the cashier. A blue tooth sensor automatically detects whether they have the app and then bills them.

Google revealed the test Thursday at its annual developers conference in San Francisco. Fast food giant McDonald’s (MCD) and pizza chain Papa John’s (PZZA) have partnered with Google to experiment with the technology in the Bay Area.

Details about Google’s payment system are still fuzzy. The company emphasized that it is an experiment. It may rely on Bluetooth technology to sense that your mobile phone is nearby. Shoppers who make a purchase receive a notification on their phone about being billed.

The technology is just one of many ideas involving mobile payments, a particularly hot space in the tech industry. A number of companies like Apple (AAPL) are experimenting with different ways for consumers to pay using their phones under the theory that paying digitally is more convenient than using cash or credit cards.

Google (GOOG) isn’t the first company to tackle hands-free payments. Payments company Square introduced hands-free payments in 2011, but has since retired its consumer-facing app that included the feature. In 2013, PayPal premiered a similar technology using Beacon, a Bluetooth device retailers placed in their stores.

In addition to discussing hands-free payments, Google unveiled a new mobile payments wallet and platform on Thursday called Android Pay.

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[youtube https://www.youtube.com/watch?v=Qxet1VdpOQ4&w=560&h=315]

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By Leena Rao
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