Dive Brief:
- Google's Android M update will include Android Pay, added privacy controls and a "Buy" button that will allow purchases to be made from mobile search ads.
- Similar to Apple Pay, Android Pay is a contactless payment system that allows checkout through near-field communication (NFC) terminals in-store, on the mobile web and in-app with a linked account.
- Developers can begin building apps for Android M immediately, and the system will roll out in the third quarter, according to a keynote speech from Google's VP of engineering at Dave Burke, the company's annual I/O conference.
Dive Insight:
Users will be able to use Android Pay at any of the 700,000 stores in the U.S. that already have NFC terminals. The mobile wallet system will also include a fingerprint authentication option.
The new “Buy” button will show up next to ads in the search results, with Google hosting checkout. The enhancement is widely expected to be a game-changer for the search engine because mobile shoppers won’t need to leave it to make a purchase. However, the button could limit retailers’ control over brand-building and upsells. Privacy permissions will change under Android M to request the user's permission on a case-by-case basis rather than at app startup.
