Saturday, May 28, 2011

Google Wallet and the Mark of the Beast ($GOOG)

google wallet The Rapture didn't happen 5/21, but have you noticed Google Wallet? ($GOOG). Cashless society? Mark of the Beast?

I'm going to talk about this from an investing point of view. I was just watching Bulls and Bears this morning, and Gary B. Smith recommended Google as his pick of the week, and projected some hefty gains in the stock price due to the addition of Google Wallet. I think it's a compelling angle. The idea is that you can pay at retailers, vending machines, etc., using your cell phone. Google will have an app that is tied into your credit card and you just waive your cell phone at cash registers to pay for stuff.

I'm guessing that the business model for Google that as you pay for stuff, the credit card company gives Google a kickback. After all, credit cards charge vendors a small fee for the convenience and safety of consumers using credit cards instead of cash.

But thinking about security, what about people losing their cellphones or hackers figuring out how to create devices that use other people's credit card numbers?

Wouldn't it just be easier if, instead of a cellphone, you just had a NUMBER ON YOUR HAND OR FOREHEAD? Or a chip, that had your unique ID number, and that you COULDN'T BUY OR SELL WITHOUT THE NUMBER?

Okay, I've left the investing angle a paragraph ago, so I'll slow down.

Obviously, with the fiscal and debt crisis around the world, you can certainly envision a time where the world has to regroup with regards to their currency and debt. I'm not predicting the End Times, but certainly the technology is getting to the point where we really don't need to lug around cash. We're not quite there, but close.

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