Google will launch two new services - Google Wallet and Google Offers - which will enable consumers to pay and use coupons using the mobile phones, according to Google during a press conference today.

Partnering with Spring, First Data, MasterCard, and Citi, Google Wallet is a mobile application that stores the credit card information and, by using near field communications (NFC) technology, allows the consumer to pay at a store by simply waving their phone – rather than taking out their card from their wallet. Google Offers, which will be automatically synced to Google Wallet, downloads online coupons.

“Your phone will be your wallet — just tap, pay and save,” said the vice president of commerce at Google Stephanie Tilenius.

The system will officially launch first in San Francisco and New York, at merchants such as Subway, Walgreens, Macy’s, and Noah’s bagels.

And about the security, Google assures that “Google Wallet’s security features go beyond what’s possible with traditional wallets and cards,” according to their website.

Google Wallet will feature an additional PIN, separate lock screen, and encrypting and storing information on Secure Element to boost the security.