You have become the new currency

I was alerted to the contents of the privacy policy for Google Payments by an episode of the BBC series – Billion Dollar Deals and How They Changed Your World – in which the presenter Jacques Peretti makes a rather astonishing (for me at least) discovery …

Take Apple Pay, there’s a small amount of money they make in each transaction. But with Android Pay, which is run by Google, they don’t take anything. So what’s going on?

The answer lies in the small print of the terms and conditions: “we may collect information about the transaction, including: Date, time and amount of the transaction, the merchant’s location and description, a description provided by the seller of the goods or services purchased, any photo you choose to associate with the transaction, the names and email addresses of the seller and buyer (or sender and recipient), the type of payment method used, your description of the reason for the transaction, and the offer associated with the transaction, if any.”

Remember that space in the transaction, the space where business makes money? Now that space is about data. You have become the new currency.

This piqued my interest as I have been using Android Pay for a few months. In doing so had I also given my consent for my personal financial transaction data to be harvested by Google?!

For the uninitiated, Apple Pay and Google Pay let you create a digital copy of your payment cards, which are held in a secure virtual wallet on your mobile phone. You can then make contactless payments using your phone instead of the physical cards.

The Apple Pay security and privacy overview states: “Apple Pay doesn’t collect any transaction information that can be tied back to you. Payment transactions are between you, the merchant (or developer for payments made within apps and on the web), and your bank“. That sounds perfectly fair and reasonable, but what about Google?

The current Terms of Service for Android Pay includes the line: “Your use of Android Pay is subject to these Android Pay Terms of Service and the Google ToS (which together, for purposes of these Android Pay Terms of Service, we refer to as the “Terms”), as well as to the Google Privacy Policy.

The Google Privacy Policy includes a link to the specific privacy practices with respect to Payments, which contains the aforementioned small print concerning Google’s collection of payment transaction information.

So yes, by virtue of using their product I did unwittingly give Google permission to ‘spy’ on my spending habits. This financial transaction data has intrinsic value and it’s obvious why Google would like to get their hands on it, but I didn’t expect the banks to be so lax as to allow it to be shared in this way.

This revelation left me wrestling with a dilemma. There is no denying that the simplicity of making small payments with a quick tap of my phone is really handy, but I value my privacy more than the convenience factor.

I just can’t abide my personal data being exploited in this way and so have reluctantly removed my payment and loyalty cards from Android Pay and I won’t be using it again. Sorry Google, but how I choose to spend my hard-earned moolah will be kept between myself, the retailer and my bank from now on.

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