The service will allow users to make payments and stores to make purchases by waving their Android phones infront of required readers instead of using credit cards.
According to reports, Google will work with MasterCard and Citibank to provide the service.
Bloomberg reported citing sources familiar with the matter that the Near-Field Communications (NFC) based service will be available on phones from Sprint Nextel.
Last week, Quick Tap, a contactless payment service that uses NFC technology in mobile phones was launched in the UK. Users need Orange and Barclaycard accounts to avail the service.
A significant change in mobile payments is expected in the next few years as a new research by communications research company Juniper Research suggests that about 20% smartphones will have NFC technology by 2014.
The report says that the NFC technology will be adopted rapidly over the next three years with almost 300 million NFC capable smartphones by 2014.
