Google wants a piece of the mobile payment pie

Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) announced it will have some Android phones come pre-loaded with Google Wallet to combat Apple Inc. (NASDAQ:AAPL) Pay. The phones will later be sold through AT&T, T-Mobile and Verizon Wireless. The phones are set to arrive later this year. The search giant also cut a deal with Softcard to provide the services.

In the deal, Google acquired technology and intellectual properties from Softcard; it will help Google garner more interest in its app and get more people to sign up.

Google and Samsung compete against Apple Pay

Google isn’t the only company to give Apple a run for its money. Just last week, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) purchased mobile payments system LoopPay. This influx of payment services all comes after Apple Pay debuted late last year. Many banks and stores accept the service. Overall interest is also growing as more companies sign up to be a part of the service.

Apple Pay accepts debit and credit cards from many banks, including American Express Company (NYSE:AXP), Bank of America, BB&T, Capital One, Chase and more. Retailers that accept the service include Bloomingdale’s, Chevron Corporation (NYSE:CVX), Duane Reade, Macy’s and McDonald’s, among others.

Mobile payment transactions expected to grow

According to research from eMarketer, U.S. consumers spent $3.5 billion via mobile payment systems. That number is predicted to grow up to $118 billion within the next four years.

Google Wallet is the search giant’s answer to Apple Pay. This service is very similar as it allows people to make payments in-store and online. It works with all debit and credit cards. Anyone in the United States with a Gmail address can use it.

Retailers like 1-800 Flowers, GNC, Quiznos and Rockport accept the service. Many hotel chains, including LaQuinta, Motel 6, and ParkPlaza also accept it. Select Android and iOS apps also accept Google Wallet.