According to a Wall Street Journal report, the web giant is working on a mobile payment technology system. Teaming up with Citigroup and Mastercard, Google are looking to create a mobile payment system that will turn Android phones into electronic wallets.
The new technology, which is in its early stages, will allow consumers to wave their Android phones in front of a small reader at the checkout counter to make payments, according to the report.
The planned payment system would allow Google to offer retailers more data about their customers and help them target advertisements and discount offers to mobile device users near their stores, sources told the WSJ.
Google is not expected to get a cut of the transaction fees, the paper said.
Initially, holders of Citigroup-issued debit and credit cards would be allowed to pay for purchases by activating a mobile payment application developed for one current model and many coming models of Android phones, the paper said.
Near-field communications (NFC) and mobile payments were the talk of this year’s Mobile World Congress (MWC) event in Barcelona.