Google finally unveiled its long-awaited mobile payment application the Google Wallet this Thursday. After months of hinting at the application, customers were at last introduced to the mobile application that will allow users to "tap, pay and save" for goods and services.

The New York Times reported that the Wallet uses near-field communications (NFC) technology to allow consumers to pay for goods by waving their cellphones at a special terminal in stores. This app will give merchants more ways to offer special coupons and loyalty points to their customers. Consumers opting to use the mobile app will no longer need to carry multiple cards because a single phone can store a multitude of cards and can be used to monitor the user's spending habits.

The Google Wallet will roll out this summer on Sprint's Nexus S 4G phone. The Nexus will be the first phone installed with the chip that sends a message to the retailers' terminals but other phone companies will soon offer more choices for users. The Wallet will only initially support a Citi Mastercard and a Google prepaid card. The Google prepaid card can be loaded with money paid for from other existing credit cards. It will work wherever there is a Mastercard 'PayPass' is installed.

There are already 124,000 merchants around the country that have the 'PayPass' terminals installed and more than 300,000 stores outside the United States. Google said that merchants are already working to add their loyalty and special offers with Google Wallet users.

It still remains to be seen whether the Google Wallet will catch on with both the companies and the market. There is a lot at stake especially for mobile phone carriers, banks, credit card companies and the IT sector. Retailers need to upgrade their terminals and banks will need to add the Wallet to their own mobile payment initiatives. Only time will tell if we need to throw away our wallets for digital money.