Pay-As-You-Go Gets a New Meaning With Google's New Tap-And-Pay Smartphone

There are two things no one leaves home without: their wallet and their mobile phone. Google has found a way to combine the two, which means lighter bags for women and slimmer pockets for men. Eric Schmidt, Google chief executive, took great joy in teasing attendees at a Web 2.0 Summit in San Francisco with his announcement of an "unannounced product", which he paraded in front of the audience.

The flaunted "unannounced product" is a touch-screen smartphone that also serves as a mobile wallet. "You will be able to take these mobile devices that will be able to do commerce ... Essentially, bump for everything and ever replace credit cards In the industry it is reported to as tap-and-pay, "said Schmidt.

The phone is intended to succeed the Nexus One smartphone and according to Schmidt, runs on fresh "Gingerbread" software and is imbedded with a near-field communication chip for financial transactions. The near-field chip operates by storing personal data which can then be transmitted to readers by tapping a handset on a pad, hence the tap-and-pay.

As smartphones develop they play an increasingly important role in our lives, we rely on them more and so they become even more advanced to suit our growing needs. It's no surprise that they now come with commerce capabilities. The idea, however, is certain to send shivers up the spines of those who treat such rapid upgrading technology with circumspection. Many accidents in the past have shown that, despite high-tech security measures, storing personal data is not without its risks. And even though Schmidt believes that the secure chips in the smartphones will stymie fraudsters, the type of data that would need to be stored to allow financial transactions must surely make some people nervous.

To ensure that transactions are completed successfully, Google will make use of an online payments processor. But as we know online systems are fallible.

Neverheless, the new capability is convenient. And it does naysayers no good to complain about the steady march of technology. We need to move keep moving forward, that's what the human race is all about. But we need to do so intelligently. As Schmidt said, "We learned with Street View and all of these things that you can not rush these products out." So it seems that Google is finally taking its "do no harm" philosophy seriously.

"The fact is that society is going to have to confront all sorts of uncomfortable questions ... as technology moves forward," continued Schmidt, who also had the grace to add that some lines should not be crossed. All of which speak of a greater sense of responsibility and accountability at Google.