Google teams up with wireless carriers to combat Apple Pay

Aiming to undercut Apple's latest hit service, Google is teaming up with three major US wireless carriers to prod more people into using its mobile wallet.

The counterattack announced on Monday is just the latest example of how the competition between Google Inc and Apple Inc is extending beyond the technology industry's traditional boundaries. Besides payments, Silicon Valley's two richest companies are expanding into fields such as home appliances and cars to increase their power and profits.

Google's latest volley calls for its payment service to be built into Android smartphones sold by AT&T Inc., Verizon Wireless and T-Mobile USA later this year. Smartphone owners currently have to download the service, called Google Wallet, and install the app on their phone if they want to use it to buy something instead of pulling out cash or a credit card.