The emergence of a patent filing has stoked speculation that Google is working on a mobile phone-based payments service dubbed “GPay”, which the search giant could roll out with a new phone handset.

Speculation increased last week over the possible shape of Google’s next foray into telecoms when a host of blogs carried pictures of what was claimed to be a low-cost internet-enabled handset – the “GPhone”.

The new patent, which was filed last year by Google but has only just been published, describes how a text message from a mobile phone could trigger a “computer-implemented method of effectuating an electronic online payment”.

While mobile phone-based payment systems already exist, some commentators suggested that the development of such a service could give Google a lift as it makes a big push into telecoms.

Background

• Stake that puts $15bn tag on Facebook

• Viacom mounts renewed attack on Google

• Google beats Wall Street with 46% profits surge

• A new private jet for Google's founders

• Vodafone chief says Google phone will get lost

Google. Who's looking at you?

It wants to know everything about you. It wants to be your best friend — or your Big Brother. Are your secrets safe with Google?

Related Internet Links

• Google company information

• Google share price charts

A Google spokesman said: “We file patent applications on a variety of ideas that our employees come up with. Some of those ideas later mature into real products or services, some don’t.”

The GPay patent filing describes a system where a user sends a text message to Google that gives details of a payment to a specified payee. GPay would debit the user’s bank account and credit the payee. It suggests that a user would not have to keep an account with Gpay as payments would be made externally.

The filing added to the feverish speculation that Google is set to make a move into mobile phone hardware. Last week, reports suggested that Google is to launch an internet-ena-bled phone, or range of phones, that could retail for as little as $100 (£50) when it makes its debut in America.

Explore Industry Sectors

• Banking & Finance

• Construction & Property

• Consumer Goods

• Engineering

• Health

• Industrials

• Leisure

• Media

• Natural Resources

• Retailing

• Support Services

• Technology

• Telecoms

• Transport

• Utilities

Times Recommends

• Bank on the brink as recession fears worsen
• Persimmon takes housing sector job cuts to 4,500
• Savills hit as London house prices down 7.5%