An upcoming Android upgrade could make credit cards obsolete by allowing for safe and simple payments via smartphone, says Google CEO Eric Schmidt. Speaking at the Web 2.0 conference in California, he said a soon-to-be-released phone (it looked to be the next Nexus) would sport a new NFC—Near Field Communications—chip. These enable so-called "tap and go" payments, which have so far been plagued by reliability issues, the Telegraph reports.
The new chip "is so interesting is because the credit card industry thinks the loss rate is going to be much better, they’re just more secure,” Schmidt said. “This could replace your credit card.” The new device will also be the flagship phone for Gingerbread, the latest version of Google's Android mobile operating system. Schmidt stressed that Google would not be getting into the credit card business; deals would have to be made between card companies and retailers to enable NFC payments.