Did The Google Wallet Just Open….


VS

If you follow me on twitter or have been watching the news, you are certainly aware of Bank of America’s (BOA) new money-making idea. In 2012 BOA will start charging $5, per month, that someone uses their debit card.

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Thought a new paragraph was needed. Did you have enough time to absorb how bad that is yet? O, don’t be “well, I use another bank” as an excuse. Trust me, the big bad bank has just opened the door for all the others (some of which have already been testing this fee in other markets – mainly on the West coast). It’s only a matter of time before this trickles down to community banks and maybe even credit unions. Likely in that order – I am partial to credit unions.

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There are MANY negative things I could say. I could go on a long rant about greedy corporate America, big banks, etc. Have you searched “#OccupyWallStreet” on twitter/google recently? If not, you should. For some reason, our media doesn’t seem to want to let you know that they are closing in on a 2 week movement – showing the wealthy 1% that the other 99% is fed up. Here is a good article if you want to learn what it’s about (LINK)

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Now, that was a bit of a tangent. Guess I was in shock that BOA would make an announcement with this much shock value when Wall St has been occupied for 2 weeks with a large group demonstrating that America has had enough of the greed. I suppose they do not care – maybe they did not see it in the media either.

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Now, here is another issue I have. You all have likely seen your bank/credit union interest rates plummet. You are lucky if you are getting 1-2% interest right now, very lucky. Do you know the reasons for the decline? There are many variables, but you can chalk it up to two things. One, banks/credit unions are not able to invest the money in government bonds that can make anything right now. Two, and this applies to the smaller community banks/credit unions mostly…. They have guidelines that they need to stick within. You need to be lending a high percentage of your deposits. When they lowered their deposit rates, it was a direct reaction to receiving too many deposits (other big banks fees, etc) and not being able to lend it out. So, you lower the rate to move those deposits somewhere else.

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With Bank of America announcing this fee, you better bet the people it would impact are going to throw up the middle finger and move to another bank. And THAT is going to hurt those small banks and credit unions  – because remember, too much on deposit can be a bad thing too.

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Now, why is that on my blog? Two reasons. One, I work in the financial industry and I consider myself a person that likes to see things done “the right way.” I do not consider this right, at all. Two, does this open the door for Google Wallet?

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Boom. I had this thought in the shower today (why do all good thoughts come in the bathroom?). Everyone noted concerns about Google Wallet – who is going to trust Google – who is going to trust NFC – who would let go of a debit card, blagh blagh blagh.

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Well, I know that I am more than willing to use my phone to pay for things now that I ever have been before. Especially if using Google Wallet allows me to keep $60 a year ($5/mth). Heck, I always have my phone with me – I can’t say that for my debit card.

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I am the first to admit I do not know much about Google Wallet. But I do know that I am more open to the idea now. I know I like the idea of tapping my phone to pay for something. I also like that Google does not charge anything to make payments this way (they do not take any cut from the transaction).

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So, I guess this was a long way of saying that maybe this opens the door for Google & NFC. Android certainly has a jump start on this new realm of payments – the Nexus S already has this ability. I saw a friend use it at McDonalds recently (it was pretty cool too).

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Do people leave “greedy banks” to the “Don’t be evil” company now?

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About s15274n

I will do what I can to help support the Android Community!

Posted on September 30, 2011, in Advocate. Bookmark the permalink. 2 Comments.

  1. welcome back to the blogosphere. don’t hurt yourself

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