Google has revealed that Android Pay and a new Google Wallet will be available "in the next few weeks."
The Google Wallet app itself gave a hint that Android Pay will be coming soon and that there will also be some changes to Google Wallet.
"In the next few weeks, Wallet's most popular features will move to two simpler apps," stated the Google Wallet team.
Google Wallet, which is a mobile payment system developed by Google, will be split into two different apps. Android Pay will take the place of Google Wallet and serve as a new mobile payment system built into Android. Google will launch a new Google Wallet app that will allow users to send and receive money.
The existing Google Wallet will soon be automatically updated to Android Pay. Gift cards and loyalty cards stored in a user's device will be automatically transferred to Android Pay. The Google Wallet will appear as a separate app in the Play Store.
Google announced the new mobile payment system at its Google I/O event in May this year, but the company did not confirm a release date for the service.
Mobile payment services are gaining popularity. An International Data Corporation (IDC) report estimates that the value of payments made over mobile networks will reach about $4 trillion by 2020. Android Pay and Apple Pay will see significant growth in the coming years.
James Wester, research director of Worldwide Payment Strategies at IDC Financial Insights, says that consumers are getting more dependent on mobile devices for searching products online, shopping online and making payments via their phones.
"As consumers' reliance on smartphones grows, as well as their level of trust that the devices are safe and secure, so will their use of mobile devices to complete transactions. The necessary pieces to spur consumer adoption of mobile payments are finally in place," said Wester.
Google is yet to reveal the release date of Android Pay, and some market observers believe that the company will launch the service along with Android 6.0 Marshmallow, probably on Sept. 29.
According to a separate IDC report, Android handsets had an 82.8 percent market share of the global smartphone market in the second quarter of 2015. During the same period, iOS had a 13.9 percent market share.
Given the number of Android handsets in use in the global market, Android Pay will definitely give tough competition to Apple Pay, which was launched in the U.S. in 2014.