Google is partnering with MasterCard and Citigroup to bring NFC enabled mobile payment services to Android users.
The search giant will be looking to boost its advertising business with the introduction of the new mobile payment technology, The Wall Street Journal reports, citing people familiar with the matter.
Android owners will be able to make payments at retail stores by merely swiping their devices over an NFC card reader. Google is not expected to take a cut from the transactions but intends to offer user data to retailers for targeted advertising and to offer personalised discount deals.
The NFC card reader cash registers are being developed by VeriFone Systems, which is expected to roll out NFC enabled cash registers across the United States.
The Google backed NFC project, which will be launched this year, will allow Citigroup debit and credit card holders to make mobile payments by installing a special mobile application. The application will use the NFC chip installed within the smartphone to make payments.
At the moment only the Samsung Nexus S device comes with an NFC chip, though other Android handset manufacturers are expected to equip all their future Android smartphones with NFC technology. Apple and Research in Motion are expected to offer NFC capabilities in future releases as well.