In a press conference on Thursday, Google officially announced the debut of Google Wallet and Google Offers mobile payment services, which could potentially threaten rival services such as Paypal, credit cards, and Groupon.

Google Wallet is a mobile payment system with NFC-enabled smartphones, allowing the consumers to simply wave their phones before a sensor to make payments for purchases. Users are required to associate Google Wallet with a Google Account to provision their cards to their account.

Google Offers will offer users online coupons for deals at local businesses. Google Offers will be delivered via email and mobile apps, and works seamlessly with Google Wallet. The integration of the two systems will give consumers easier access to going paperless and making card-less payments, as well as providing offers and coupons from retailers.

The system will be first introduced this summer in New York and San Francisco, partnering with Subway, Walgreens, Macy's, Noah's bagels.

How secure is it?

NFC mobile payment is more secure than card payments, as the system provides a higher level of authentication.

Instead of an easily readable card with your account number imprinted, an NFC-enabled device is encrypted and password-protected within the phone.

In the future, Google plans to provide services such as drivers' license, health care card information and more into Google Wallet with NFC payments as well as Groupon functionality.

Google teamed up with Citi, MasterCard, FirstData and Sprint to launch the service.

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