M-commerce is more and more being mentioned as the “next big thing” in mobile.

Now, Google has launched a new payment system that allows merchant to take payments from mobile phones without the merchant having to deal with credit or debit cards.

How it works

The new Google system works as follows:

1. The seller downloads the Android Payment Extension for Google’s Checkout Store Gadget.
2. Then the sell must input the products that they have for sale into a special Google spreadsheet.
3. The Google Gadget then allows them to create a virtual shopping basket for their customers on their computer which generates a barcode.
4. Customers with Android handsets can then scan the barcode into their phones to access their Google Checkout accounts and make the purchase.

This system is actually quite a clever way to link online purchases to mobile payments, and Google’s brand name will certainly help it gain acceptance. However, most online sellers want to be able to sell to everyone and anyone, and this system is currently limited to only Android based handsets.

“While this payment method may not be perfect for all cases, we hope you find it useful for setting up a shop on the go and that it inspires further innovation in the mobile and payment developer communities,” says Google Checkout developer Peng Ying.

The fact that a company like Google is launching such a product should increase consumer awareness and acceptance for paying by mobile, something that has long been predicted but that no one has so far managed, and could be the kick-start that is needed.