Schmidt shows off Google's new Gingerbread-powered Android handset. Photo: REUTERS
At opening this year’s Web 2.0 Summit in San Francisco, Eric Schmidt, Google’s chief executive, showed off the company’s next Android-powered phone, which will contain a Near Field Communication chip that will allow people to make payments via their handsets.
According to Schmidt the upcoming version of Android, called Gingerbread, will be used in this smartphone, and will feature this new mobile payments system as a key tool.
“This could replace your credit card," Schmidt said. “The reason this NFC chip is so interesting is because the credit card industry thinks the loss rate is going to be much better, they’re just more secure." He also said that Google would not retain any personal data obtained through credit card transactions via the phone.