Google is reportedly working with Citigroup and Mastercard to develop a mobile payment system that will allow Android phone users to make contactless payments.
The Wall Street Journal reported citing people familiar with the matter that the new near field communication (NFC) technology will allow consumers to make payments by waving their Android phones in front of a reader placed at the checkout counter.
The NFC technology, which allows reading data by waving a card rather than the conventional swipe, is already embedded within many credit card readers.
According to the report, Google is not expected to take any commission from the service, but may generate money from advertising.
The payment system would allow the search engine company to offer advertisers more data and help them target ads and offers to mobile-device users near their stores.
The project is in its early stages and is expected to be released this year.
