Google rolls out its Wallet app to Nexus S users

Search giant aims to add momentum to its contactless payment system for smartphones

Google is set to extend the availability of its Google Wallet near field communication (NFC) payment system to some users of its Nexus S smartphone, who will then be able to pay for goods by swiping their handsets.

Google has been testing its Wallet smartphone app - which was first unveiled in May 2011 - for use with Mastercard's PayPass system. It uses NFC chips in the handset to wirelessly communicate with nearby readers.

Google will now deliver an over-the-air update for Google Wallet to users of the Nexus S 4G handset on the Sprint network in the US, said Osama Bedier, vice president of payments at Google. Google will be bringing Wallet to more phones in the near future, said Bedier.

Google also confirmed that it had signed licensing agreements with Visa, Discover and American Express, to enable their cards to be added to future iterations of Google Wallet.

Mobile contactless payments have attracted huge interest across the tech sector, with analyst firm Frost & Sullivan predicting that by 2015 the total amount spent via the NFC-based systems would hit £97bn by 2015.

Other payment firms, including PayPal, are developing their own NFC-based systems, while Orange and Barclaycard launched their Quick Tap system in the UK in May.

But to date, the number of handsets equipped with NFC technology has remained limited.