Google will launch Android Pay at I/O in May

Rebecca Ungarino
An Android sculpture stands in the lobby of Google I/O last June.
Harriet Taylor | CNBC

Google will be announcing a new payments interface for Android this May called Android Pay, a source close to the matter told Ars Technica. The platform, to be announced at Google's annual I/O software-developers' conference in May, will power in-store and in-app payments for third-party apps, reported the technology news website.

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Android Pay will allow companies to add a payment option to their mobile apps, according to Ars Technica, on which users can upload credit and debit card information.

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Users' payments will become single-tap transactions, and will enable any business adopting the Android Pay system, called an application programming interface (API), to permit tap-to-pay transactions in brick-and-mortar stores.

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This new function will utilize Google's Host Card Emulation (HCE), reported Ars Technica, which allows for interaction between third-party apps and Android phones' Near Field Communications (NFC) chips. NFC chips enable two devices within a few centimeters of each other to exchange data.

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Google Wallet, Google's mobile payment system, currently offers APIs like "Instant Buy API," which allows Android developers to drop a "Buy with Google" button in their app, according to Ars Technica.

It is unclear whether Google Wallet APIs will be phased out after the launch of Android Pay.

Read the full report from Ars Technica here.