James Delahunty
24 May 2011 20:45
Reuters cites sources in reporting that Google will unveil its mobile payments service on Thursday.
The Internet giant has teamed up with Mastercard Inc. and Citigroup Inc. to develop a system where users of some Android phones can use them to pay for purchases instead of using a credit card. It has signed up partners including Macy's, American Eagle Outfitters and Subway.
The Wall Street Journal reported on the effort back in March, but was unsure whether the service would initially be limited to New York as speculated, or go nationwide.
Google has invited reporters to an event on Thursday where a Reuters source confirms it will take the wraps off the mobile payment service, which will work initially with phones from Sprint Nextel Corp running Android.
While similar NFC payment technology is in use in Asia, some Nordic countries and elsewhere around the world to pay for goods and services, it has been slow to come to the United States. This has been due to a combination of bickering within the industry over the technology, regulatory hurdles and concerns that consumers would ignore it.
However, tech companies have teamed up with elements from the financial services industry anyway, not wanting to be left behind if consumers do take well to mobile payments.