November 22nd, 2010

Google Inc.’s Android software forsmartphones, utilizing a special device called Near Field Communications (NFC), will soon open the gateway for consumers to make mobile payments usingsmartphones, essentially replacing the functionality of credit cards.

Google Chief Executive Officer Eric Schmidt claimed that the new technology would enable consumers to purchase products by simply tapping their handset over a sensor or terminal.

Japan has already embraced such a methodology of electronic payment, or “mobile wallet,” whereby phones are able to store encrypted credit card information and able to utilize those details during a transaction in the form of retail coupons so that stores and public transportation would be able to accept payment with a simple tap.