The WSJ has an interesting article describing Google’s mobile payment solution. The system works with an Android phone with NFC capabilities (of which there is only one now, but will be many more soon). The system is in test with Citibank to allow users of Citi’s credit cards to use their phone for payment.
The interesting thing here is that Google does not want a piece of the transaction, but wants to keep the transaction information to use for targeted advertising. When you enter a store, an ad can display on your phone as based on your purchase history. Google will monetize the system by selling these ads to merchants. This is sure to raise privacy concerns, the lack of cost to retailers or the credit companies could make this system very attractive.