Users of the credit card and cash replacement system are advised to spend any remaining gift card balances before August 21.
On that date, Google will be disabling the NFC functionality for any gift or loyalty cards that users store in their Google Wallet. However, for those that have physical gift cards, there's no need to panic as the change will not affect them.
Google Wallet's ultimate aim is to consign debit cards, credit cards, cash and even physical coupons, loyalty cards and gift vouchers to the history books in favor of a unified virtual system that lives inside users' NFC-enabled smartphones.
The idea is that instead of fishing around in a pocket for coins, cards and tokens, simply tap a phone on the contactless payment sensor and everything is done automatically. Rewards points are redeemed or added, payments are taken from a designated account and everybody's happy.
However, since the service was launched in 2011, it has failed to capture the public's imagination, despite the fact that Google has continued to add new features and uses to it.
One of the problems that not just Google, but all other companies in the virtual wallet market face is that very few shops and stores are prepared to invest in the point of sales devices that enable consumers to pay for goods via a phone. Likewise, consumers are not prepared to sign up for the services until more shops are set up to accept payments from a phone. And of course a smartphone needs to support NFC (Near Field Communication) in order to use the app, a feature that not all companies build into their handsets.
Google hasn't clarified why it is disabling the NFC gift and loyalty card feature but has revealed that it is working on a solution and will release more details "soon".
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