French newspaper Les Echoes has reported that Google (chairman Eric Schmidt pictured above) has been negotiating with banks and retailers in the UK to run pilot projects in early 2012. 

Providing these run without hitches, the Google Wallet service could then be rolled out fully in time for the summer games.

Google Wallet allows consumers to carry out transactions using their mobile phones through the use of near-field communication (NFC). Using the same technology as used on London Transport’s Oyster cards, it will allow consumers to pay for products and services by tapping their mobile phone. 

Trials  have been conducted in New York and San Francisco along with Google Offers, the organisation’s local offers service. 

The Google Wallet would allow visitors to the city to use their phones to pay for things such as food and drinks, and would ease the number of currency issues withh the influx of tourists to the city next summer.

Samsung has already announced though its plans with VISA to release a specially-designed handset in time for the games that will be equipped with NFC, and O2 has apllied for the right to hold customers’ money in a ‘virtual wallet’ on their SIM car too.