Google CEO Eric Schmidt has provided a sneak peek of a new feature of the company’s Android operating system.

The new venture will use a Near Field Communication (NFC) chip, as part of Google’s upcoming release of the Gingerbread platform, which is due for release on a prototype device.

The technology will allow users to pay for goods by tapping their phones, as well as receive special deals and updates from retailers.

More detail will be released soon – so watch this space!