Google has unveiled new plans for early 2012 when the company will merge Google Checkout with the new Google Wallet service.
Following the transition, users of Google Checkout will be able to make purchases via Google Wallet, an NFC-powered service, enabling consumers to make payments by tapping their phone on a PayPass-enabled terminal at checkout. The wallet enables consumers to pay with a Citi MasterCard credit card and a Google Prepaid Card, which can be funded from existing plastic credit cards. Google Wallet requires users to set up a Google Wallet PIN that must be entered before making a purchase to prevent unauthorized access and payments.
The Google Checkout service allows customers to make purchases from online stores using payment and shipping information they keep on file with Google. Current users of Google Checkout can automatically transition to their account to Google Wallet when they sign in or make a purchase online.
As far as merchants are concerned, no additional integration or other technical updates will be necessary for the transition to Google Wallet. According to Google, the company commits to upgrade its payment solutions for merchants ensuring that they are able to process payments without interruption during the holidays. Therefore, shoppers using Google Wallet will be able to make purchases on a merchant website which accepts Google Checkout.
Furthermore, in early 2012, Google will work closely with its merchant partners to switch to the Google Wallet logo and share details on new and upcoming features.