Google is considering plans to launch a mobile payment service this year using near-field communication (NFC) technology, Bloomberg has reported.

The NFC-enabled Nexus S phone, developed with mobile phone manufacturer Samsung Electronics, will serve as a test for a Google payment and advertising service, a person knowledgeable about Google told Bloomberg.

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Speaking about NFC technology at a conference in November, Google’s chief executive Eric Schmidt predicted a consumer will be able to walk into a store and use their mobile to carry out e-commerce.

“You’d bump for everything and eventually replace credit cards,” he said.

The ‘bump’ technology allows users to ‘bump’ their mobile phones together to send money.

Bloomberg cites its source for the story as two people familiar with the plans. They have requested anonymity as the plans are yet to be made public.

Laura Chambers, online payment provider PayPal’s senior director of PayPal Mobile,  has claimed it is open to partnering with Google on NFC payments. Chambers told Bloomberg, PayPal may also look to embark on plans to launch a commercial NFC service in the second half of 2011.