Google Wallet will be the future payment processor on your android phone. Do you own a Nexus-S 4G by google? If so now you can make your android phone as a payment processor. Nexus-S 4G was the first phone that supports Google wallet apps.
this news was comes from official Google Blog on googleblog.blogspot.com. It was said that Google Wallet was an Android app that will make your phone your wallet. You’ll be able to tap, pay and save using your phone and near field communication (NFC). Cool huh? So how do these Google Wallet Apps works? Google Wallet stores virtual versions of your existing plastic cards on your phone, along with your coupons, loyalty and gift cards. Whenever you come across a merchant that accepts ‘Google Wallet’ (currently PayPass by Citi MasterCard only), you will simply need to tap your phone with the contactless reader and the payment will be completed. No swiping of cards required at all. This method will be safer than other online payment system.
Here's the information from google blog about Google Wallet. Wow it seems that this payment method will enhance the security features of an Online Payment system. i Hope that google will soon add another Android phone that supports this apps.
Because Google Wallet is a mobile app, it will do more than a regular wallet ever could. You'll be able to store your credit cards, offers, loyalty cards and gift cards, but without the bulk. When you tap to pay, your phone will also automatically redeem offers and earn loyalty points for you. Someday, even things like boarding passes, tickets, ID and keys could be stored in Google Wallet
Google Wallet will support both Citi MasterCard and a Google Prepaid Card, which you’ll be able to fund with almost any payment card. From the outset, you’ll be able to tap your phone to pay wherever MasterCard PayPass is accepted. Google Wallet will also sync your Google Offers, which you’ll be able to redeem via NFC at participating SingleTap™ merchants, or by showing the barcode as you check out. Many merchants are working to integrate their offers and loyalty programs with Google Wallet.
Want to know more about Google Wallet? visit google.com/wallet. and Here's the Demo Video of Google Wallet Usage