Will Google Be Your Next Wallet?

Google Inc. unveiled its new Google Wallet smartphone app, a program that will allow consumers to pay for goods and services with a tap of their phones. The new app is being field tested in New York City and San Francisco.

When it launches sometime in the next few months, the Google Wallet app will work only on Android Nexus S 4G smartphones using the Sprint network. In order to make payments, consumers will need to be Citicorp Inc. Citi MasterCard cardholders, or purchase a Google Prepaid Card, according to the company. To make payments, consumers will need to tap their phones on pads wherever MasterCard's PayPass is accepted.

Google says its Wallet app is the first step in a wider effort to integrate credit and debit cards, gift cards, loyalty programs and “deal” services, such as Groupon or LivingSocial, into one digital wallet you carry around in your phone. According to the Mountain View Calif., company’s blog: “When you tap to pay, your phone will also automatically redeem offers and earn loyalty points for you. Someday, even things like boarding passes, tickets, ID and keys could be stored in Google Wallet.”