Google plans mobile phone credit card

Google is set to join forces with MasterCard and Citigroup to let users of its Android mobile phones pay for purchases using ‘near-field communications’ (NFC) technology, reports say.

The move confirms suggestions made by Google when the NFC-enabled Nexus S handset launched, and would give the search giant a response to Orange’s UK plans to use Barclaycard’s technology for mobile phone ‘contactless’ payment. Apple is also rumoured to be considering using ‘NFC’ chips in its future iPhone products.

The Wall Street Journal has reported that “The planned payment system would allow Google to offer retailers more data about their customers and help them target ads and discount offers to mobile-device users near their stores. Google isn't expected to get a cut of the transaction fees.”