Google has launched its mobile payments system’ Google Wallet’ in the US, allowing people to pay for purchases simply by waving their smartphones at the cash register.
The Google Wallet stores people’s credit card information, coupons and discount cards on smartphones using Google’s Android operating system.
For now the Google Wallet only works with Google’s Nexus 4G phone over the Sprint network in the US, and via an agreement with Mastercard.
But phones that include the Near Field Communications chip that the system uses are expected to hit the mainstream next year, when Google Wallet could quickly become a viable alternative to credit cards.
Google has partnered with Citi, MarsterCard, Sprint and First Data to offer the service that lets consumers “tap, pay and save using your phone and near field communication (NFC).”
Juniper Research estimates that the mobile payments market will reach $670 billion by 2015 due to consumers’ rapid adoption of NFC contactless payments, mobile ticketing, physical goods purchases and money transfers via mobile phones.
Google is not alone in championing next generation payment solutions. Big name businesses such as Visa, MasterCard and PayPal plus smaller startups like Square are putting their weight behind mobile payments.
Google is also in talks with American Express and Discover to add their cards to Google Wallet in the future.
On its official site, Google Vice President of Payments Osama Bedier, said: “When we announced Google Wallet, we pledged a commitment to an open commerce ecosystem. We appreciate Citi and MasterCard for being our launch partners. And today, Visa, Discover and American Express have made available their NFC specifications that could enable their cards to be added to future versions of Google Wallet.
“Our goal is to make it possible for you to add all of your payment cards to Google Wallet, so you can say goodbye to even the biggest traditional wallets.”
Google has begun rolling out Google Wallet as an over-the-air update on Sprint Nexus S 4G phones. The application can also be downloaded here.
A demo of the service in action can be viewed below:
