Google is reportedly working with bank Citigroup and credit/debit card provider MasterCard to launch an Android based payments system using the NFC technology baked into the Nexus S. According to the WSJ's sources, Google will release an app later in the year which allows Citigroup customers to swipe their phones on VeriFone-made NFC enabled payment terminals.
The same app may allow for payment history tracking along with coupons and other personalized offers to be pushed. On the flip side, Google - and its retailer partners - would be able to gather greater information on shopping habits, and thus better tailor its advertising.
Google would apparently not take a cut of the transaction fees, instead only getting a foot in the door on better quality analytics. The search giant was previously tipped to be readying NFC payment trials in San Francisco and NYC.