Google's acquisition of Zetawire

Newly manufactured devices running Android 2.3 or Gingerbread have NFC chips that help people make mobile payments.
NFC is an abbreviation of Near Field Communication, which is a short range technology and uses electromagnetic radio fields to enable two devices to interact.
It is used in situations where there is physical proximity between devices and enables secure interactions between them. Google intends to use this technology to turn mobile phones into electronic wallets.

Google acquires Zetawire
After technical analysis firm The 451 Group revealed that Google had acquired Zetawire, the pieces finally fell into place because the startup is the inventor of Near Field Communication. The deal, which was carried out in August, didn't come into the limelight earlier. The price of the transaction is not known either, but is likely to be small since there were only four to five employees in the company.
Zetawire's Near Field Communication
When it was bought, Zetawire didn't have a product, but had filed a US patent application for Near Field Communication.
The NFC chips in Android mobile phones will work on the idea that if mobile advertising and coupons can be related with purchasing, it will be possible to trace online advertising at every step. In this manner, Google will be able to tell you in concrete terms whether your online advertising penny is well spent or not.
For the users it means that Google now knows his location, what he is looking for and his communications via Gmail as well. Now, users' transactions will also be known to the company.