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Google reveals mobile payment plan

Google, Citi, Mastercard, First Data and Sprint have teamed up to launch a new service which provides all the features of a wallet, on a mobile phone.

Google Wallet will enable consumers to ‘tap and pay’ for goods, saving time and money while they shop. For businesses, the service offers an opportunity to strengthen customer relationships by offering a faster, easier shopping experience with relevant deals, promotions and loyalty rewards.

It uses near field communication (NFC) to make secure payments fast and convenient by simply tapping the phone on any PayPass-enabled terminal at the checkout. Google Wallet will be accepted at more than 124,000 PayPass-enabled merchants in the US and more than 311,000 worldwide.

Retailers already on board include American Eagle Outfitters, Bloomingdale’s, Foot Locker, Guess, Jamba Juice, Macy’s and Subway. Google Wallet will be available to shoppers this summer starting with offers, loyalty and gift cards, then Google is hoping to extend this to receipts, boarding passes and tickets in the future.

The first release of Google Wallet is expected on the Nexus S 4G on the Sprint network, with additional devices to follow, including Google’s Android phones.

“The launch of Google’s mobile payments service is yet another validation of mobile commerce; the competition for NFC mobile technology has been fierce with card companies, operators, handset manufacturers and EPOS owners wanting a piece of the action,” said Thomas Twigg, mobile solutions, Velti. “This makes for a much more fragmented market and potentially overwhelms consumers with options.”

Jenni Baker, London