Google Wallet Makes its Debut

By NICK BILTON
via NewYokTimes

Google announced its long-awaited new solution for eventually replacing credit cards with mobile phones.

The new product, called Google Wallet, stores people’s credit card information, coupons and discount cards on Google Android smartphones and allows people to pay for products with a swipe of the phone. The merchants needs a technology called near-field communication, or N.F.C., which enables short-range wireless communications between a phone and an N.F.C reader.

But don’t throw away your credit cards and wallet just yet.

Google Wallet comes with several caveats. To use the new feature you will need a Sprint Nexus S 4G phone with built-in N.F.C. technology, a Citibank account and a MasterCard credit card. Google said it hoped to eventually add Visa, Discover and American Express to its wallet software. It is not clear when these credit cards can be used.

Google is just one of dozens of companies competing to replace plastic credit cards with a digital alternative. Technology companies including Square, Venmo and PayPal are trying to offer similar products and larger banks are working with phone manufactures to ensure they are not pushed out of the mobile banking race.