Google Wallet officially announced along with Google Offers (UPDATED with announcement video)

Google’s NFC payment system was officially unveiled today at an event in NYC. Starting this summer, consumers with an NFC-enabled device will be able to swipe their device over a PayPass point-of-sale scanner and pay for goods. San Francisco and New York will be the first markets, with retailers like Subway and Walgreens on board from the start. Mastercard and Citi will be the first credit brands to partake, with exclusivity on early eligibility (those without a Citi Mastercard can get a GCard). Google is welcoming partnerships with open arms though, and you should expect to see retailers and creditors piling into the venture, which is free for merchants to support. over 120,000 U.S. merchants will participate at launch, and over 320,000 worldwide.

Google also unveiled Google Offers, a system whereby retailers can offer customers discounts and other purchase incentives, and consumers can reclaim those offers via NFC. No more clipping coupons! Well, once this whole NFC thing is in full swing, which will take a few years. Stores can also set up customer loyalty programs with NFC, so you won’t need to carry one Safeway Club card, one for Albertson’s, etc., etc.

Here’s the announcement video: