Google Inc. this week said that it will launch Google Wallet, a new wireless payment system to be used in the Android operating system, this summer.
Google Wallet will utilize NFC, or near-field communications technology to allow consumers to pay for products with a tap of their smartphone.
The software can store virtual payment cards like a Citi MasterCard, Google Prepaid Card, or merchant gift card. Users tap their smartphone on the reader and the transaction is complete.
The system will work at any MasterCard PayPass terminal, in addition to more than 300,000 merchants in global territories.
Sprint Nextel Corp.’s Nexus S 4G device, which includes NFC technology, will be the first smartphone support the new payment system.
Additionally, Google will launch Google Offers to relay deals from local and online merchants. Consumers can buy or save an offer to their Google Wallet or show a barcode to redeem the virtual coupon.
U.S. retailers to back Google Wallet include Macy’s Inc., Subway, Walgreens Co., American Eagle Outfitters, and The Container Store.