Google, in partnership with Citi, MasterCard, First Data and Sprint, unveiled its mobile payment system.
Google Wallet is a mobile app that uses near field communication (NFC) on the phone. At launch, Google Wallet will be compatible only with Google’s own Nexus S 4G, which is available in the U.S. exclusively on Sprint’s network. Payments are enabled by either Citi MasterCard or a Google Prepaid Card. Merchants will need the MasterCard PayPass system to collect the NFC payments.
Payment card credentials are stored in an encrypted format on a “Secure Element” chip on the mobile phone. This chip is different than the memory which is accessible by the Android operating system. The user will need to enter a PIN whenever making a payment to the contactless reader.
Sprint is supporting Google Wallet, although the carrier said it is working with others in the mobile payment ecosystem as well.
http://www.google.com/wallet/
