Google wallet - App for Paying With Phone

Heard of wireless payment system? This is the new venture of the tech giant - Google in its attempt to make leather wallets go the way of the typewriter.

On Thursday (March 26, 2011), Google unveiled Google Wallet, a mobile app that will allow consumers to wave their cellphones at a retailer’s terminal to make a payment instead of using a credit card. The app, for the Android operating system, will also enable users to redeem special coupons and earn loyalty points.

Starting this summer, Google wallet will be available on the Nexus S 4G phone on Sprint and able to hold certain MasterCards issued by Citibank. It will also hold a virtual Google Prepaid MasterCard.

The mobile wallet will function at any of the 124,000 merchants that accept MasterCard’s PayPass terminals, which take contactless payments, and more than 300,000 merchants outside the United States. The wallet is powered by a technology called near-field communications, which is incorporated into a chip in mobile phones and sends a message to the merchants’ terminals.