Near field communication technology will allow users to make payments via mobile phones, and is expected to make a debut this year.
Near Field Communication (NFC) is a data transmission system over short distances of a few metres. Two devices with NFC chips that are in close physical proximity can receive and send data to one another such as bank account information, purchase receipts etc.
Businessweek reports that the service may make its debut this year.
Google last month also released a new version of its operating system Android, called Gingerbread, which has some NFC features such as the ability to read RFID tags.
Last year Google bought Zetawire, a Canadian startup with a patented method of combining a phone-based wallet with a reward-and-loyalty system. Google Ventures, the company's venture capital arm, also invested in Corduro, a developer of mobile-payment solutions in Southlake, Texas, adds the Businessweek report.
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