The agreement granted Google a worldwide license to Visa payWave, a NFC-based payment technology. This mobile application enables consumers to use their smart phones as a digital wallet for debit and credit transactions. When paying for a transaction, mobile phones are waved in front of a payment terminal at worldwide retail locations and the payment is made.
Google Nexus 4 Smartphones already operate on MasterCards (NYSE:MA) “pay-pass” systems, which are currently installed and ready to operate at 124,000 locations nationwide.
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Visa’s stock (NYSE:V) is up 3.12% to $92.84 on the news. Shares are up 31.5% year to date. The stock has traded in a 52-week range between $66.50 and $94.75.