When plans for Google Wallet were originally announced in May, people finally got an inkling about the real purpose of the NFC or near field communication chips that have been included in the Samsung Nexus S since its debut. The Nexus S is, of course, the official Google mobile device. It is fitting, then, that Google Wallet will make its first official appearance on the device, which runs on the Sprint Nextel network. While the news is exciting, there are plenty of questions whirling around out there about the new technology. Learn more about Google Wallet, how it works and what it means for the future below.What is Google Wallet?Google Wallet is a digital wallet that allows people to use their mobile devices to pay for things. It relies on near field communication or NFC technology, which allows two devices to communicate with one another within a close proximity. The concept behind Google Wallet is pretty simple: You load your credit card and debit card information onto the Google Wallet app on your smartphone, and you can use those cards to pay for things by simply waving your mobile device in front of a payment terminal.The main purpose of Google Wallet is to allow people to pay for things without having to reach for their actual, physical wallets. With so many people using debit and credit cards in lieu of cash these days, this technology will undoubtedly prove to be quite popular. After their purchases are rung up, a person can simply wave their Nexus S in front of a PayPass-enabled terminal. The payment is deducted by whichever credit or debit card that the person has authorized. Multiple payment methods can be stored on Google Wallet, and you can specify one method as a default.

The Official Debut

Originally, Google Wallet was supposed to debut on September 1. As it happens, the official launch date actually took place on September 19. However, it still managed to happen in the summer, so Google made good on its original promise. As exciting as the debut is, the vast majority of people aren’t going to be able to participate in it. For one thing, you have to have a Samsung Nexus S smartphone. For another, it has to be on the Sprint Nextel network. Finally, Google Wallet payments will initially only be accepted at PayPass terminals.

PayPass

During its initial phase, Google Wallet can only be linked to Citibank MasterCards. There is also a prepaid Google MasterCard that can be loaded with funds from other credit cards and debit cards. In short, if you don’t currently have a Citibank MasterCard, you will have to wait a little longer before you can use Google Wallet. A part of the reason for this is that Google Wallet is only accepted at PayPass terminals. Those terminals have been installed in select locations by MasterCard. They are already available in New York City taxis, and you can also find them at Whole Foods, McDonald’s and Macy’s.

Who Will Get the New App?

As noted above, only those who own the Samsung Nexus S will initially have access to the Google Wallet app. From here on out, new Nexus S smartphones will come preloaded with the app. Those who already own the Nexus S will receive the app in an update. Over time, the app will be made available to a broader range of devices. Of course, those devices will have to include NFC chips in order to support the technology. That point alone limits the number of current devices that are capable of supporting Google Wallet.

Expansion Plans for Google Wallet

While Google Wallet can only be linked to Citibank MasterCards and the prepaid Google MasterCard in the beginning, plans are afoot to expand the types of payment options that can be linked to the app. Ultimately, Google hopes for the app to support every conceivable form of debit and credit card payment. Credit and debit cards are just the tip of the iceberg too. The app already includes an option for adding loyalty card information. This will allow people to do away with those loyalty card key fobs. Google Offers deals will also be integrated into the app.

Using Google Wallet

A few folks have already taken Google Wallet out for a spin. According to reports, the app is a snap to use. It comes with a PIN that must be entered before a payment can be made. This feature is clearly designed to prevent “accidental” purchases. It’s also meant to keep rogue NFC card readers from accessing sensitive financial information. After designating a default method of payment and entering the PIN, you can tap or swipe your smartphone to pay for your purchases. The PIN has to be reentered every five minutes, though, which may prove to be annoying for some people.

The Competition

Naturally, plenty of other companies are feverishly working to get in on the NFC technology game. Not surprisingly, several credit card companies are developing digital wallets of their own. AT&T, Verizon and T-Mobile have teamed up to develop Isis, which will offer digital wallet apps on devices that run on those networks. One notable blank spot on the playing field is Apple, which hasn’t announced any definite plans for NFC technology. Rumor has it that the upcoming iPhone 5 will include such a chip, though, and it’s likely that a digital wallet app won’t be too far behind.

While Google Wallet is only available for a limited number of people and accepted at a limited number of places, Google is offering $10 to anyone who gives the technology a whirl. In terms of success, there’s little doubt in anyone’s mind that Google Wallet will prove to be a success. By being the first company to offer a usable form of the technology, Google has a definite leg up on the competition. If you’re eager to try it yourself, you’ll need to sign up with Sprint Nextel and get the Samsung Nexus S. Otherwise, you will have to wait a little longer.