NEW YORK - Last week Google, Citi, MasterCard, First Data and Sprint announced and demonstrated Google Wallet, an app "that will make your phone your wallet so you can tap, pay and save money and time while you shop."

"Today, we??ve joined with leaders in the industry to build the next generation of mobile commerce," said Stephanie Tilenius, vice president, commerce and payments, Google. "With Citi, MasterCard, First Data and Sprint we??re building an open commerce ecosystem that for the first time will make it possible for you to pay with an NFC wallet and redeem consumer promotions all in one tap, while shopping offline."

Google Wallet is currently in a field test and will be available to consumers this summer. At the event, Google, Citi, MasterCard, First Data and Sprint introduced Google Wallet and invited additional issuing banks, payment networks, mobile carriers, handset manufacturers, point of sale systems companies and merchants to join the initiative.

Google Wallet uses near field communication (NFC) to make secure payments by simply tapping the phone on any of MasterCard??s PayPass-enabled terminal at checkout. It will require an app-specific PIN and in the first release, all payment card credentials will be encrypted and stored on a chip, called the secure element, that is separate from the Android device memory and is only accessible by authorized programs.

"Citi??s role as the lead bank in Google Wallet is the latest demonstration of how we are committed to becoming the world??s digital bank, providing to customers the tools they need to manage their everyday finances with convenience and value," said Paul Galant, CEO of Citi Global Enterprise Payments. "Today??s announcement and our active collaboration with Google will be looked at as the inflection point for how mobile payments are evolving from concept to mass utilization."

Google Wallet will immediately be accepted at more than 124,000 PayPass-enabled merchants nationally and more than 311,000 globally.

"MasterCard has pioneered mobile payments with our PayPass technology and we??re proud that it is at the heart of Google Wallet," said Ed McLaughlin, chief emerging payments officer, MasterCard. "We??re excited to partner with these industry leaders today and committed to continuing to play a leadership role in the development of mobile payment technologies."

Google is also working with VeriFone, Hypercom, Ingenico and VIVOTech to create a new SingleTap shopping experience. Consumers will be able to pay for an item using a credit card or gift card, redeem promotions and earn loyalty points ?" all with a tap of their Google Wallet.

Retailers participating in the new SingleTap experience include: American Eagle Outfitters, Bloomingdale??s, Champs Sports, The Container Store, Duane Reade, Einstein Bros. Bagels, Foot Locker, Guess, Jamba Juice, Macy??s, Noah's Bagels, Peet??s Coffee & Tea, RadioShack, Subway, Toys"R"Us and Walgreens.

The first Google Wallet field tests are focused in New York and San Francisco, where many retailers, Coca-Cola vending machines and taxis are PayPass-enabled, including major outlets such as CVS, Jack in the Box, Sports Authority and Sunoco. First Data is actively recruiting thousands of new merchants in these areas and will soon expand those efforts to deploy more contactless merchant terminals across the country.

Because Google Wallet is a mobile app, it will eventually be able to do more than a regular wallet. It will start with offers, loyalty and gift cards but some items like receipts, boarding passes and tickets will all be seamlessly synced to a Google Wallet.

The first release of Google Wallet is expected on the Nexus S 4G on the Sprint network. Additional devices with NFC capabilities will follow. Sign up to be notified about the release at google.com/wallet.

For more on the future of mobile payments, read the May NACS Magazine cover story, "The High-Tech Payments Battle."