Google to set up a mobile payment system this year?

(PhysOrg.com) -- Mobile payment is an arrangement that has a lot of potential to make your life easier, but it also has a lot of potential to create issues with identity theft. That is why when a new company jumps into that arena they have to be fairly well trusted, in order to get a decent adoption rate.

That is where Google comes into play. Unnamed sources within the company have made mention of plans to start testing a mobile-payment system in as-yet-unnamed stores in New York and San Francisco, sometime between now and the end of July, if the sources turn out to be correct.

The system will be expected to let shoppers pay for their purchases with their mobile phones. While there is no word on whether or not this technology will only be for Android-based phones only, but at the beginning it is likely to be only for Android, since that is Google's proprietary mobile device operating system.

If these rumors prove to be true than the company will be helping business in the named cities to install thousands of cash register systems, designed to work with the mobile payment technology, made by VeriFone Systems Inc. (PAY).

While at this point everything is speculation, since Google has made no official announcement, the type of technology that is used for mobile payment is called near-field-communication. With the help of a special chip, the technology will be able to store credit card data, store loyalty card information and maybe even coupon information. It can then transmit that data to stations that have the right chip inside the register with a simple tap. The actual system may vary, since Google has announced nothing official at this time.

If you live in one of the two target cities keep your eyes peeled.

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