Verifone (PAY) Soars on Google (GOOG) Mobile Payment Project

Shares of VeriFone (NYSE:PAY) were up over 8 percent in mid-day trading on news Google (Nasdaq:GOOG) will start testing a new mobile payment service at stores in New York and San Francisco.

Systems developed by Verifone will be used in the roll-out, the reason for the upswing in the company's shares.

Mobile devices which include near-field communication technology will be able to be used at cash registers with the new system installed on them.

Funds can be transferred from the bank of the user or a credit card they have. The ability to use gift cards and coupons, among other elements, could be also used with the new system.

VeriFone was trading at $51.98, gaining $4.07, or 8.50 percent, as of 12:24 PM EDT. Google was trading at $564.03, down $5.96, or 1.05 percent.