Google Inc is working with Citigroup Inc and Mastercard Inc to embed mobile payment technology in Android mobile devices to allow users to make purchases by waving their handsets in front of a small reader at retailers, report published in the Wall Street Journal claims.

According to the report, the venture, which aims to transform handsets into a kind of electronic wallets, also involves VeriFone Systems Inc- the supplier of credit-card readers for cash registers.

VeriFone will reportedly provide so-called contact-less devices, or readers that will enable buyers to make payments with a wave/tap of their smartphones or a credit/debit card.

The mobile payment technology, Near Field Communications (NFC), will have many advantages over keeping cash in pocket. Experts believe the mobile payment technoliogy will be more secure as well as convenient in comparision to keeping cash.

However, the report said Google would like not be able to pocket a cut of the transaction fees.

None of Google, Citigroup and Mastercard responded to request for comment on the report.