You’ll be able to tap, pay and save using your phone and near field communication (NFC) with Google Wallet.
As rumored Google has announced an NFC payment service today. Google Wallet is in field test now and it is supposed to be released soon. Google Wallet is a mobile app that will do more than a regular wallet ever could. You'll be able to store your credit cards, offers, loyalty cards and gift cards, but without the bulk. When you tap to pay, your phone will also automatically redeem offers and earn loyalty points for you. Someday, even things like boarding passes, tickets, ID and keys could be stored in Google Wallet.
In the beginning Google Wallet will support both Citi MasterCard and a Google Prepaid Card, which you’ll be able to fund with almost any payment card. You’ll be able to tap your phone to pay wherever MasterCard PayPass is accepted.
Google Wallet will initially be available on the Nexus S 4G from Sprint. Over time, Google plans to support more phones.
This is a pretty limited roll-out of Google Wallet, with a limited number of partners and only one Android phone that supports it. The race to run the pre-dominate NFC based mobile payment service just started. See also the Google Wallet page.