Well, the first version of the Google Wallet in retrospect was a trial and error type endeavor. But, with the release of the new Google Wallet 2.0 strategy it seems as though the company has further aligned themselves with what we consider will be necessary to make mobile payments work; open infrastructure. The Google Wallet 2.0 will also includes advanced security features an aspect that addresses some of the much raised concern surrounding protection and security.

With the new Google 2.0 Wallet users can up load major credit cards which will be store in “the cloud”; Visa, MasterCard, Amex and Discover for making purchases. For in-store purchases a Virtual MasterCard will be stored on the Secure Element to process the transaction. Google calls this aspect the, “Google Wallet I.D.” The Virtual MasterCard will permit non MasterCard holders to pay on any PayPass ™ terminal.

This is an exciting as well as a very strategic partnership for MasterCard but will also benefit many Google Wallet users. MasterCard® PayPass™ terminals are expediently being deployed meaning that even those who are not paying with the PayPass™ App, can use other cards on the terminals. For example to illustrate the opportunity the partnership creates; there are already 200,000 MasterCard® PayPass™ terminals in the US whereas Google Wallet has only signed up around 25 retailers. (Dan Balaban, NFC Times)

“At the heart of the new version of Google’s cloud based Wallet is a virtual MasterCard in the phone which is linked to their credit or debit cards that are stored in the cloud.” (Mung Ki Woo, group executive, mobile, at MasterCard Worldwide, wrote on the MasterCard cashless conversations blog)

To address security concerns Google Wallet 2.0 will feature remote disabling and resetting of the mobile wallet if the device is lost or stolen. The Google Wallet App also features a Passcode for the Wallet which cannot be unlocked.

The improvements to the Google Wallet along with the MasterCard partnership further indicates that open infrastructure and scalable solutions are at the heart of winning the critical mass for mobile payments.

Read more from the MasterCard Cashless Conversations Blog

Read more from NFC Times on the Google Wallet 2.0 strategy