MasterCard explains the Paypass technology as: "A tiny microchip and radio antenna embedded in your PayPass-enabled card, key fob, device or phone transmit your payment details wirelessly to a high-speed PayPass reader at checkout. The reader then verifies your transaction with your bank through MasterCard's reliable network and indicates approval almost instantly."

Google's attempt is being hailed as a catalyst to usher in a mobile payment revolution. However, Google has its own agenda - its advertisement-based model which is at the heart of the mobile payment venture.

With Google Wallet, Google has reached the holy grail of consumer marketing space - the point-of-sale. Coupled with its other services like Google Offers, AdMob and location-based service, Google can now offer a potent opportunity to targeted ads.