Google tightens its grip on smartphone wallets

Google has assured users of its smartphone wallets that the mobile-age technology thwarts thieves better than old-school cash or bank cards.

"Mobile payments are going to become more common within the coming years, and we will be able to learn far more as we continue to develop Google Wallet," Google payments vice chairman Osama Bedier said in a blog post.

"Meanwhile, you will be confident that the digital wallet you carry provides defences that plastic and leather simply don't."

A Google Wallet feature that lets people load prepaid card information in smartphones for spending was re-activated this week after being shut off for about a days to repair a possible security vulnerability.

"While we are not conscious of any abuse of prepaid cards or the Wallet PIN due to these recent reports, we took this step as a precaution to make certain the safety of our Wallet customers," Bedier said.

The action from Google came after a Zvelo Labs researcher demonstrated software that quickly figures out a Wallet personal identification number (PIN), provided the crook has the smartphone.

The researcher dismissed the specter of hackers picking Google Wallets remotely, explaining that physical access is wanted to get priority access to controls in a process called "rooting."

Security specialists advise Google Wallet to enable safety features similar to full-disk encryption and screen locks.

Google Wallet is on the market only on Nexus S and Galaxy Nexus smartphones. Google plans to expand the feature to more Android phones.

Google Wallet uses a near field communication chip embedded in a phone to permit a user to "tap-and-pay" for purchases at a checkout register equipped with the PayPass system from CitiMasterCard.

Customers could also use a Google Prepaid card to pay for purchases, topping up the Google card with any payment card, and profit from Google Offers, the Mountain View, California-based company's online discount coupon program.

As well as taking into account mobile payments, Google Wallet allows consumers to pay using gift cards and to redeem promotions which includes discounts or coupons.

- AFP