Yesterday Google announced Google Wallet.Google Wallet is an Android app that makes your phone your wallet. It stores virtual versions of your existing plastic cards on your phone. Simply tap your phone to pay and redeem offers using near field communication, or NFC.
Google Wallet is being field tested and will be available this year.
Google Wallet will initially work with Google's Nexus S 4G smartphone from Sprint, the third-largest US wireless provider, and will eventually be expanded to other phones equipped with near field communication (NFC) technology.
An NFC chip in a phone allows a user who has entered his or her credit card details to "tap-and-pay" for purchases at a checkout register equipped with the PayPass system from CitiMasterCard.
Customers can also use Google Prepaid cards to pay for purchases and take advantage of Google Offers, the Mountain View, California-based company's online discount coupon program.
The company said Google Wallet will be accepted at more than 124,000 US merchants at launch and more than 311,000 around the world.
Stephanie Tilenius, Google's vice president for commerce and payments, described Google Wallet as the "next generation of mobile commerce."
The first merchants and stores to accept mobile payment through Google Wallet are Subway, American Eagle, Macy's and American Outfitters along many others.
Google Offers is tightly connected with the Wallet app. After you make a purchase, depending on the store you are in, you will be able to receive special coupons or loyalty points, which you can use at a later point in time.
Controversy:Google vows to fight suit over mobile 'Wallet'
Google on Friday rejected a charge that it swiped PayPal trade secrets to build its new mobile application that turns a smartphone into an electronic wallet.
Within hours of the unveiling of "Google Wallet" on Thursday, eBay and PayPal filed a lawsuit charging the Internet giant tapped into the online financial transaction service's know-how for the mobile payments project.
PayPal spent three years trying to work out a deal in which it would handle payments for Android smartphones, only to see Google scuttle the talks and hire PayPal lead negotiator Osama Bedier, according to court documents.
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"Silicon Valley was built on the ability of individuals to use their knowledge and expertise to seek better employment opportunities, an idea recognized by both California law and public policy," a Google spokesman told AFP.
"We respect trade secrets, and will defend ourselves against these claims."
