Google Seeks Patent on Payments by Text Messaging

PALO ALTO, Calif. – Internet search engine Google has filed an application for a patent for a text message payment system which would compete with the fledgling mobile payments systems being offered by dozens of credit unions and banks. The GPay patent would use an SMS text message from a mobile phone to trigger a “computer-implemented method of effectuating an electronic online payment.” A user would send a text message to Google that gives details of a payment to a specified payee. GPay would debit the user's bank account and credit the payee. The patent application was filed in February 2006 but only became public last week, fueling speculation Google also is developing a new Internet-enabled phone, dubbed GPhone. Speculation is rife that Google will roll out the GPhone with the GPay payment system pre-installed. Google introduced its own online payments system, called Google Checkout, about 14 months ago, which competes with eBay’s PayPal online payments system.