Google announces its mobile payments system Google Wallet, which will be bundled with Google Offers and 'Just Tap, Pay and Save' model.

Today, Google unveiled Google Wallet and Google Offers at an event in New York City. The company plans to combine the essential elements of retail to make way for the shopping experience of the future. The bundled pairing of mobile payment and coupons involves turning Android-powered smartphones into a digital wallet.

Here's how it works: Coupons for items you purchase regularly will appear on your phone, as well as out-of-stock merchandise while you're shopping, with an option to buy the item online. At check-out, wave your phone in front a terminal, which will charge your card. Customer loyalty points from that merchant will also be added to your phone. Eventually receipts will be delivered to your device.

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