Google, MasterCard, Citigroup, transaction processing company First Data and Sprint will make the service available this summer in New York and San Francisco, Google and its partners said.
The service, which competes with plans by Visa and other top U.S. banks and mobile phone companies, is similar to how people shop in Asia, where some customers already routinely wield smartphones like credit cards.
Designed to work as an app on Android phones, Google's service hitches a ride on MasterCard's "PayPass" technology, which lets shoppers tap cards for payment. Google has signed up retailers including Macy's Inc, American Eagle Outfitters Inc and Subway to blend the service with loyalty programs and discount offers.
Click to expand...