Remarkable breakthrough! Google are Ready to Change the Smartphone into the Digital Wallet

SAN FRANCISCO - Google is rumored to be launching a mobile payment platform that allows people to use smartphones to pay in stores as easily as they use a credit card.

NFC technology

Later, Google introduced the system at a press conference in New York with the help of large financial institutions that have partnered with California-based Internet giant for this project.

Launched by Reuters technology Google has invited journalists to see the 'latest innovation', but refused to give details.

Mobile payment system will take advantage of the chip communications (NFC) in the smartphone which basically sends data or financial transactions with a wave of friction at a tool store to check out.

Google build the latest generation smartphone Nexus S with NFC chip that converts the device into a virtual wallet, allowing users to 'swipe and pay' for financial transactions. Samsung to build handset touch screen, powered by Google's Android mobile operating system.

Google CEO Eric Schmidt said shortly before the Nexus S was launched in the market in December that he expects smartphones to be a trend as a means of payment.

"A mobile payment system based on Android gadget can add Google's momentum in the smartphone market is very competitive," he said.