Google to debut mobile wallet technology

Internet giant Google has said it will release a new smartphone that combines a type of mobile technology that will allow people to “tap and pay”, chief executive Eric Schmidt has said.

Speaking at the Web 2.0 conference in San Francisco, Schmidt said the new Google smartphone will use the “Gingerbread” software and comes with a near-field communications chip.

“You will be able to take these mobile devices that will be able to do commerce,” he said. “Essentially, bump for everything and eventually replace credit cards. In the industry it is referred to as tap-and-pay.”

Schmidt says this will allow users to make tap-and-pay transactions, along with contactless payments. The company will use an online payments processor to handle the eCommerce transactions.

The move comes as the mobile payment scene is heating up, with new ventures such as Square and Visa’s PayWave expanding the contactless payment scene.

Rumours have indicated Apple may be working with similar technology for a new iPhone model.