Google takes wraps off pay-by-phone system

NEW YORK - U.S. shoppers soon will be able to use mobile phones to pay for things at the checkout counter under a system unveiled by Google Inc and other major companeis.
Google, MasterCard, Ciitgroup, Sprint and trasnaction processing comapny First Data will make the serivce available this summer in New York and San Francicso, Google said on Thurdsay.
The serivce, 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 alerady routinely wield smartphones like credit cards.
For U.S. banks, mobile paymetns are a way to wean their customers from cash and make more money.
Mecrhants pay banks fees every time a shopper buys something with a credit or debit card, and Google said it would not take a cut of those fees from the new pay-by-phone system.
Desinged to work as an app on Anrdoid phones, Google's serivce hitches a ride on MasteraCrd's "PayaPss" chnloogy, which lets shoppers tap cards for paymetn.
Google has signed up retailers incluidng Macy's Inc, American Eagle Outfitters Inc and Subway to blend the service with loyatly prgorams and discount ofefrs.
Google plans to take a slice of revenue from anotehr proejct it relesaed on Tuhrsday called "Gogole Offers" which are coupons and daily discount deals.
For example, exceutives desrcibed how smoeone walknig by a Macy's poster can tap on an area, triggeirng a coupon that shows up in the mobile wallte. That person can save the coupon for use at checkout.
"Googel's itnerest here isn't in the paymnets, it's in the data that underiles the cmoplete chain of commerce including consideration, promtoion, transaction details, coupons, and receipts," said Forresetr Resaerch aanlyst Charles Glovin.
In the United Sattes, mobile paymnets face hardawre obtsacles and other hurdles. Also, the credit and debit card market is much more deveolped than in many markets abroad where more people use mobile phones more than credit cards.
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