Google to begin NFC retail payment trials in the US

Google is set to install mobile payment infrastructure in retail outlets in New York and San Francisco, which will allow users to pay for goods using their near-field communications (NFC) enabled Nexus S smartphones.

The firm is working in conjunction with VeriFone, a manufacturer of point-of-sale equipment, and ViVOtech, a provider of mobile-payment technology. NFC-enabled terminals are expected to be in stores within the next four months, according to Bloomberg.

NFC trials are also expected to take place in Chicago, Los Angeles and Washington DC as Google signals its intent to drive mainstream NFC adoption.

Interestingly, the news comes just 24 hours after widespread reports suggested that the iPhone 5 will almost certainly lack NFC capabilities.

Google is trying to lead the NFC race, but it is likely that Apple will be able to make up any lost ground, argued Francisco Jeronimo, research manager for European mobile devices at IDC.

"NFC is likely to take off in Europe next year, with firms such as Visa and Mastercard still needing to work on authentication and security features," he told V3.co.uk.

"Apple has most likely chosen to leave out NFC from the iPhone 5 due to a lack of infrastructure, but it could also be because of technical reasons. However, once the service gets popular Apple will incorporate it into the iPhone."

V3.co.uk contacted Google to discuss NFC plans, but the firm declined to comment.

RIM is the latest manufacturer to confirm that it will incorporate NFC technology into its devices.

O2 plans to roll out a mobile-wallet application in the UK in the coming months, while Orange is set to release a contactless payment system in the summer that will allow users to pay for purchases using their phone.

Other operators including América Móvil, China Unicom, Deutsche Telekom, Telecom Italia, and Vodafone have also signed up to support NFC.