This week started with a rumor related to Google's contactless payment system and now the rumor has turned into reality. The
internet search giant has launched the trial mobile payment system in New York and San Francisco. It has collaborated with Citibank and MasterCard for this endeavor. While these two places will get to use the service this summer, the rest of the USA will have to wait for some time.
Google Wallet will be available as an app and currently only Nexus S 4G can support this app. The app will ask you to input your credit card information. During the trial phase, only Citi MasterCard will be accepted. Though, you can also use Google Debit Card too. Further, you can use this service only at the establishments which have PayPass enabled terminals. The app lets you set a spending limit, in order to ensure the security. It will also require the user to enter a PIN.
Google also launched its "Offers" program, which is likely to provide strong competition to Groupon and other 'daily deal' sites. In addition to a standard daily deal, Google will also come up with reward based deals from its participating merchants.
Google is not going to rest on its laurels after launching mobile wallet. It is actually looking to turn your smartphone into a virtual wallet, complete with information about your loyalty cards and driver license. Mobile wallet service is already very popular in technologically advanced countries like Japan, where more than 20 percent of its population is signed up for such services.