Android 'to replace credit cards'

Eric Schmidt, Google’s chief executive, showed off the company’s next Android-powered phone, which will contain a chip that will allow people to make payments via their handsets.

Opening this year’s Web 2.0 Summit in San Francisco, Schmidt showed off the new phone, which had the manufacturer’s label deliberately covered up, but is assumed to be the next Nexus device, following the Nexus One, and will contain a Near Field Communication chip, that will allow people to use their phones like credit cards.