Google launches mobile payment service

Google is to launch a mobile payment app called Google Wallet that allows customers to pay for their shopping with their phone.

The company has been working with Citibank, MasterCard, merchant processing services provider First Data and US mobile operator Sprint to develop the system.

The technology uses near-field communications (NFC) and has been embedded in the latest Android smartphones.

"With Google Wallet, we're building an open commerce ecosystem, and planning to develop APIs that will enable integration with numerous partners.

"In the beginning, Google Wallet will be compatible with Nexus S 4G by Google, available on Sprint. Over time, we plan on expanding support to more phones," said Rob von Behren and Jonathan Wall, founding engineers on Google Wallet.

According to Google, users will be able to store credit cards, offers, loyalty cards and gift cards on the app.

When users tap their phone against an NFC reader to pay for goods, their smartphone will also automatically redeem offers and earn loyalty points.

Google said that it plans to allow more services to be stored in the app, which might include boarding passes, tickets, ID and even keys.

Google Wallet will also sync with Google Offers, allowing users to redeem offers via NFC at participating merchants.

At first, Google Wallet users will only be able to top up using Citi MasterCard and a Google Prepaid Card. The service will launch in New York and San Francisco, before being rolled out internationally.

More information is available at the Google Wallet web site.