Google has tentatively released its Wallet app, a virtual payment system on your smartphone. The internet giant envisages a world where people no longer need to carry cash or plastic cards, instead making a payment by a simple wave of your phone.

Google has tentatively released its Wallet app, a virtual payment system on your smartphone. The internet giant envisions a world where people no longer need to carry cash or plastic cards, instead making a payment by a simple wave of your phone. Google wants to kill the wallet, and they may very well succeed.

So how does it work? You’re at your favorite coffee shop and you’ve ordered your daily caffeine fix, you tap your phone at the checkout reader and… that’s it, you’re done. The app can be linked to your credit cards and will also store gift cards and loyalty cards from participating stores, eliminating the need for carrying a physical wallet bursting with plastic.

Currently only available on Sprint’s Nexus S 4G, there are plans to bring the app to all phones. Google will face many obstacles in making this take off, the biggest being the issue of security. While we are assured that Google Wallet is a secure method of payment, people will understandably be wary of putting all their credit information onto their phone. But if Google Wallet is universally adopted by merchants, the convenience for consumers will be undeniable and Google will have realized their vision.

Check out this video of Seinfeld’s hopeless George Costanza discovering Google Wallet. It looks like he’s been persuaded, have you? Share your thoughts with us via the Twitter or Facebook buttons below.