Tej Kohli brings the latest news in the business world. Serach engine giant Google is now working on a Mobile Payment technology. Here is the complete report at Tej Kohli business blog.

If WSJ is to be believed Google is joining hands with Citigroup and Mastercard to create a mobile payment system that will convert android phones into a sort of electronic wallet.

The technology, which is still at a nascent stage, will let users wave their Android phones in front of a small reader at the checkout counter to process payments.

The proposed payment method would allow Google to offer retailers more data about their customers and help them target advertisements and discount offers to mobile device users near their stores, said the WSJ, citing sources familiar with the matter.

Google is not expected to get a cut of the transaction fees, the paper said.

At the onset, holders of Citigroup-issued debit and credit cards would be allowed to make payments for purchases by activating a mobile payment application developed for one current model and many coming models of Android phones.

Tej Kohli business blog is a place to find all the latest news related to business and finance. Tej Kohli himself is an entrepreneur based in San Jose Costa Rica. To read more updates by Tej Kohli keep reading this blog.