Google has planned to start testing an NFC mobile-payment service to allow the customers to make purchases just by tapping their mobile phones to specialized cash registers. The experiment will start as soon as within four months, at a few retail locations in New York and San Francisco. While Google has still not revealed its plans to the public, the news is reported by two people familiar with the project.

The search giant will reportedly pay for the installation of cash-register systems from VeriFone Systems at merchant locations. These registers would accept payments from mobile devices equipped with near-field-communication technology, so that users can make purchases without the need of credit cards. This will give Google an edge in the growing list of companies experimenting with NFC. The service will be combined with consumer’s financial account information, gift-card balances, store loyalty cards and coupon subscriptions on a single NFC chip on a phone. As of now, eBay’s PayPal and ISIS are leaders & Google will be facing a direct competition from both of these.

As mobile payment transactions are growing exponentially, all Paydiant, ISIS and Google are heading in the battle. While Paydiant is expected to come up with something really interesting, Isis has already recruited several U.S. merchants. Google is also getting involved and will soon roll out the the service at a few merchants.

Google’s OS Gingerbread will be an API for the same new wireless-wallet concept, NFC. It means you’ll be able to make a payment at the store using your phone just by tapping the register. No credit cards, no swipes! Now Google is also not alone as Apple also intends to join the race by creating NFC-enabled devices. As of now, the technology is available in only few handsets like Nexus S, we may expect Apple to develop the next best platform. Still Google remains the best place to start NFC as it offers a diverse range of handsets.