GO-Tag Shopping Chip

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First Data, already a leader in the payment-processing industry, has a new and innovative product planned for consumers, the GO-Tag. What is a GO-Tag? It’s basically a sticker that can be attached to your cell phone, watch or just about anything, and which functions much like a prepaid gift card. It’s an inch and a half square and embedded with a special chip.

In fact there are two ways the GO-Tag can be used. First Data is planning to use the method known as closed-loop. Closed-loop GO-Tags work like prepaid gift cards. Consumers will go online to transfer money to their GO-Tags and then can use them at specific shops. An open-loop version would connect directly to a bank account and allows the GO-Tag to be used like a debit or credit card.

Mobile payments via cell phone is a phenomenon already taking place in Japan, a payment method made possible thanks to special chips embedded directly into cell phones. The chips allow the phones to be used much like a MasterCard or Visa. Analysts predict that the technology will become standard in the United States over the next 10 years.

But before chips embedded directly into cell phones take center-stage, consumers may use a GO-Tag to make purchases. Nick Holland, analyst at Aite Group, says “What First Data is doing is a step in the gradual direction of your phone becoming your wallet. It’s training wheels for future mobile payments.”

At the present time, the GO-Tag will be used in a more limited manner. A trial run of GO- Tags was implemented earlier this year by the Colorado Dodgers. They gave mini key chains to season ticket-holders and now every time the ticket-holders buy something at the stadium they can swipe their tags to earn points, which can later be redeemed for prizes. Jason Linscott, director of ticket sales and service for the team, said using the GO-Tags as loyalty cards is a baby step. Next year, they are considering the possibility of offering cash-loaded rewards cards, and eventually they would like to see the cards used just like debit and credit cards for purchases made at the stadium.

First Data did perform another test on the GO-Tag in their own corporate cafeteria and at the Democratic National Convention this past summer. The company made available approximately 5,000 GO-Tag pins to journalists and delegates at the convention. Each pin was preloaded with a credit for $10 and could be redeemed for refreshments. A total of over 3100 transactions took place over three days.

First Data has some well known companies interested in utilizing the GO-Tag concept, but they aren’t sharing details until they are confirmed.

For questions about obtaining a limited edition pin.
First Data Media Relations
303-967-6323
mediarelations (at) firstdata (dot) com