Google Plans to Turn Your Android Phone into an Electronic Wallet

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In the future, you better not lose your Android phone. Google is teaming up with MasterCard and Citigroup to turn your Android phone into a portable wallet, allowing you to pay for purchases simply by waving your phone around.

It would basically enable Citigroup credit and debit cardholders to pay for purchases easily using NFC technology. Instead of swiping a card, customers would just be able to wave their phone in front of a reader. Earlier this month, whispers were getting thrown around that Google may indeed be launching a mobile payment system. Well, I’ll be darned if that’s not a coincidence.

The payment system is being developed for upcoming Android models; however, Google’s Nexus S has already been shown to come with an NFC chip. With Apple’s iPhone 5 also rumored to get similar technology, it could be an interesting shake-up in the upcoming future.

In addition to the payment technology, Android users would also be able to manage credit-card accounts and track spending through their phone.

Engadget says Google has already filed a patent that places the company, “…as a third-party broker who receives the shopping cart [information] of customers…” Google is expected to use the data culled to offer retailers more information, and, of course, better target ads and promotions toward phone users. Google, though despite its role, won’t be receiving a cut of any transaction fees.

The Wall Street Journal reported that Wal-Mart representatives already begun preliminary talks with Google. The Journal also went on to say that the new Google system is expected to be released later this year.

(via Wall Street Journal)

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