It uses a technology called NFC (Near Field Communication) to securely send your payments digitally.

The only phone in the US that supports NFC is the Google Nexus S, available with t-mobile and Sprint, and there are high hopes that the iPhone 5 will support it too.

Right now, Google Wallet only works with Citi-Mastercards and the Google Prepaid Card. Visa and Google announced a worldwide agreement to support the Visa payWave app, but it will still be up to the financial institutions and banks to add support.

The “tap and pay” method of payment is cool, but the Google Wallet feature that has the most potential is what Google is calling SingleTap. The SingleTap experience means that users can combine their coupons, loyalty cards and payment method all with one tap. It’s an interesting concept … digital save all your credit cards, loyalty cards, and soon tickets, boarding passes, and more.

Security

At first it might be scary to think you will enter all your data into your phone … what if it gets lost? Well, it’s a lot better than if your wallet gets lost … at least your phone has an initial passcode, a second pin number for Google Wallet, and if you’re smart, a remote format feature to securely delete your entire phone’s data should it get stolen.

Privacy

A big question that many would-be users are sure to have about Google Wallet is “does this mean Google knows what I buy.” The answer, at least right now, is no. Google does record local transactions on your phone, but these transactions are only identified by amount and location and are only viewable to you.

In practice, this means that if I look at my Google Wallet history, I only see a date, an amount and an approximate location. Google says that it is working to roll out a more robust digital receipt system in the future.

Diversity

American Express, Visa, Paypal, Google, and the major carriers are all racing towards raining the NFC arena. Google was the first to go-to-market, and there’s a recent announcement that American Express, Discover and Visa have all licensed their NFC technologies to Google, the next step is to get the thousands of financial institutions and merchants on-board with an NFC system.

Other uses

NFC is going to be one of the key technologies of 2012 … with easy communication among phones and cheap RFID tags, we will not only see seamless mobile payments, but also tap to get additional info on any product, posters, magazines, or socially connect to other phones for gaming or networking. NFC’s possibilities are endless – so expect an innovative and fun year to come.

The first Google+ infographic was released an the numbers pretty much confirm it: 26 million users, 100% of which work in software engineering, web development, advertising, or related careers. Should be interesting to watch it shift (or not) now that Google+ is open to the public.

Google, like Amazon, hasn’t secured licenses from the four major recorded-music companies, according to these people, and is likely to include a system that functions much like a remote hard drive. Users of the service are expected to be able to listen to songs they have uploaded to the service in a so-called streaming mode but won’t be able to download the files themselves.

It’s funny how Google follows every amazon stop … Amazon Elastic Computing (EC2) -> Google App Engine … Amazon Simple Storage Service (S3) -> Google Storage for Developers … Amazon Cloud Drive / Player -> Google Cloud Drive / Player …

With Google’s amazing track record (of zero) of building friendly services and applications, I don’t expect their music locker to really take off … especially again if it’s based on Google Storage for Developers, which is not being used by any developer.

Google, do you want to really get anywhere with this? Buy Orb, scale it, embed it seamlessly into your cloud, and offer up the first cloud based full media center.

While Google Instant isn’t necessarily the exact definition of instant, it’s definitely a whole lot faster. Overall it saved 17 seconds over all ten searches combined. That’s only 1.7 seconds per search on average, but let’s say you perform 40 searches per day—that’s 24,820 seconds, 413.67 minutes, and nearly 7 hours per year. Not bad.

Google announced and released instant search today, a feature that combines instant dynamic results with predictions to instantly populate the page with results as you type.

• Dynamic Results – Google dynamically displays relevant search results as you type so you can quickly interact and click through to the web content you need.
• Predictions – One of the key technologies in Google Instant is that we predict the rest of your query (in light gray text) before you finish typing. See what you need? Stop typing, look down and find what you’re looking for.
• Scroll to search – Scroll through predictions and see results instantly for each as you arrow down.

Here’s a video that explains Google Instant in greater depth:

Google posted a few hours after the launch that “you may see fluctuations in traffic for organic keywords”, which could translated into, oh, btw, you might need to re-build your KPIs as we just changed all metrics …

For instance, because Google refreshes the results every 300ms, your impressions may go through the roof, but yes conversion or clickthroughs may stay the same, go up, or down … depending on they keyword relevance for partial sentences.

Impressions are measured in three ways with Google Instant:

1. Your site is displayed in search results as a response to a user’s completed query (e.g. by pressing “enter” or selecting a term from autocomplete). This is the traditional model.With Google Instant, we also measure impressions in these new cases:
2. The user begins to type a term on Google and clicks on a link on the page, such as a search result, ad, or a related search.
3. The user stops typing, and the results are displayed for a minimum of 3 seconds.

In conclusion … SEO is not dead, Google did not kill it, but Google Instant is definitely a game changer for SEO and data metrics & analytics.

Sites will need to optimize for particular letter combinations, not just entire keywords. It will be interesting to see whether results get spammed or if Google will gain the upperhand in this constant cat and mouse game.

Facebook’s Open Graph offers far more than the ability to “like pages.” It’s Facebook’s play to power the semantic web.

Facebook’s Open Graph can allow for deep personalization of any Open Graph-enabled content — content that reacts to your age, your gender, your friends, your personal preferences and even the things you “like.” The only thing required to fully achieve hyper-relevance would be understanding your location — but a soon-to-be-released update to the Open Graph API will allow developers to integrate location-based services into any website or mobile application. For example, imagine integrating Open Graph into Google’s search results and then think about what type of search results you might get back if you searched for “Caribbean vacation” and it knew that you were married, had two kids, lived in New York, were 34, had “liked” a Windsurfing Brand or a sport team, and were currently posting a search from your home address in the evening.

Facebook’s big mistake when rolling out the Open Graph was trying to hide what I believe is their true intention. They could have avoided the whole privacy debacle if they had asked consumers if they wanted to share some of their details with Open Graph “to allow for a new type of web experience that was truly personalized to their desires.” Many people would be willing to give up some of their privacy if they understood the upside. And those who didn’t could have been given the chance to opt out. They might be able to avoid the subject with consumers, but do they really believe their competition doesn’t see exactly what they’re doing?

Until early this week, I was wondering how Google would maintain their dominance in search if the key to the semantic web was effectively powered by social networks. I just couldn’t imagine Google wanting to leverage Facebook’s Open Graph to influence their search results and then Kevin Rose from Digg leaked that Google would be releasing their own social network called “Me.” I think Google’s true reasons for re-approaching social networks is because they recognize it’s a necessary component to achieving the next generation of search technology. And Orkut just didn’t get them there. As fascinating as it’s going to be to watch these two heavyweights duke it out to dominate our digital lives for the next 10 years, when I look at their past histories with privacy issues I can’t help but ask: should we be more scared than excited?

TechCrunch confirmed today that it’s not a rumor, it’s real.

D’Angelo, who was Facebook’s CTO for years, shared his thoughts as an answer to one of the questions on Quora. Here’s his response:

• This is not a rumor. This is a real project. There are a large number of people working on it. I am completely confident about this.
• They realized that Buzz wasn’t enough and that they need to build out a full, first-class social network. They are modeling it off of Facebook.
• Unlike previous attempts (before Buzz at least), this is a high-priority project within Google.
• They had assumed that Facebook’s growth would slow as it grew, and that Facebook wouldn’t be able to have too much leverage over them, but then it just didn’t stop, and now they are really scared.

Google has failed over and over again in providing any service that’s user friendly, i.e. Buzz, Latitude, Social Search, Google Friend Connect, Wave, Wave again, especially Wave … Though mark my words, Latitude will take off and will be base of amazing LBS services … Anyways, Google usually lacks of good design and usability, which makes it hard to believe they can compete with Facebook.

But the funny bit is that while Google is going after social networking, Facebook is making the move towards search. Shiv shared some thoughts on Facebook Search, and although I have some different thoughts, [Facebook] Open Graph is the beginning of a new semantic search that goes deep as opposed to broad and finds relevant content based on profile, location, and human recommendations.

So my predictions:

1. Google Me will have amazing technology, platform, have geo-social-mobile as a core, leverage elements from Latitude, Buzz, Open Social, and will be native to all new releases of the Android platform, including Google TV. Their success will rely on Google making a massive effort in making it usable, friendly, and having a good design.

2. Facebook will enter the search war, but not before they enter the display advertising arena. Search is a low priority as it provides less direct revenue opportunity for Facebook, whereas serving relevant context / social aware ads on 3rd party websites using the Facebook Open Graph provides a massive immediate revenue opportunity.

Thank you Gigaom

So I’m an iPhone user, and so are most of my friends … but I really think the new gold mine is Android; I was playing with the HTC Hero and Samsung Moment today, Droid Eric over the weekend, and can’t wait to get my hands on a Nexus One … With 50 new Android phones coming out this year, an open app eco-system, and 4G coming out this year, I really can’t wait to see the outcome …

Oh, I was playing with some custom phones I bought from China with Video conferencing over Wifi and it works awesome… so 4G/Wiki, Android OS, free cloud hosting, Google Voice / other VoIP providers … New communications are here, this will be an interesting year.