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Google working on phone with built-in payment tool

Google Inc. is taking another stab at designing a game-changing mobile phone, this time by including a built-in payment system that could eventually enable the devices to replace credit cards. The new phone got a brief preview Monday when Google CEO Eric Schmidt took the stage to kick off the Web 2.0 summit, a technology conference held annually in San Francisco.

Schmidt confirmed that Google has been working on a sophisticated new computer chip and an upgrade of its Android mobile operating system that will include a payment processing tool. He showed off the new phone with the device’s name and manufacturer concealed. Get the full story »