Google is on the verge of revealing an Android based mobile payments service.
People familiar with the matter have told The Wall Street Journal (opens in new tab) that the company is planning to unveil a near-field communications based mobile payments system at an event in New York on Thursday.
NFC enabled smartphones and services allow users to make small payments from their phones by swiping the device in front of it. Some people think that mobile payments will ultimately replace cash and debit cards in the future.
Source told the WSJ that service will first be rolled out in New York and San Francisco before being available elsewhere. Some of the participating retailers in the new mobile payments service include retailers Macy’s and American Eagle as well as the Subway fast food chain.
The WSJ had earlier reported that Google is partnering with financial companies Citigroup and MasterCard and credit card hardware makers VeriFone Systems and ViVOtech.
Even if Google doesn’t get a significant cut of the transactions, the service will undoubtedly boost its digital advertising business. The company will be able to provide retailers and advertisers with more data about users in order to offer them targeted discounts and ads.