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Google to turn mobiles into payment devices

Search engine shows off handset with Near Field Communications technology

Google has revealed its next smartphone will feature Near Field Communications (NFC) technology to ensure users can pay for goods with their handset.

Google CEO, Eric Schmidt, unveiled the handset at the Web 2.0 summit, which is taking place in San Francisco, this week. However, the search-engine has concealed the manufacturer's logo, leaving us in suspense over with smartphone maker Google has teamed up with this time.

It is believed that the handset, which will run Google's mobile operating system Android, is the successor to the Nexus One – Google's 'superphone' that was launched at the beginning of the year.

The sucessor to Google's Nexus One is expected to offer Near Field Communications technology

The Nexus One, which was manufactured by HTC, is powered by a Qualcomm 1GHz Snapdragon processor and features a 3.7in 480x800-pixel AMOLED screen.

The NFC technology will need to be used with the next version of Android, known as Gingerbread, which will be made available in the "next few weeks", according to Schmidt. The combination will allow mobile phone owners to tap their handset on a special pad in a store to pay for goods and services.

"This could replace your credit card," Schmidt said.

"The reason this NFC chip is so interesting is because the credit card industry thinks the loss rate is going to be much better, they're just more secure."

The search engine said it has no alliances with individual credit card companies and it will not be able to access personal data from the transactions.

See also: Google Nexus Two to hit UK before Christmas?


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