A source of Ars Technica has revealed that Google is working on a new in-store and in-app payments API for third-party applications. The API will be called Android Pay and is slated to be unveiled at Google I/O this year. 

The APIs will allow developers to integrate mobile payments option in their app providing users with one-tap transactions once they have entered their credit or debit card details. The source, however, claims that Google does not have any partner for its upcoming Android Pay API at this point.

The new API have been “built from the ground up” and will make use of Google’s Host Card Emulation (HCE) to allow for tap-to-pay functionality in physical stores. It will also provide developers with the necessary APIs to enable tap-to-pay functionality in its app that will work in their retail stores.

Bizarrely though, the source also pointed that Google Wallet will continue to co-exist and will be supported by Android Pay. This presumably means that users will be able to easily add their credit or debit cards from Google Wallet to Android Pay. However, while paying, users will not have to necessarily go through Google Wallet if they don’t want to.

Google first tried to take on the mobile payment market with the launch of Google Wallet in 2011. However, its first attempt was a disaster, and the company’s future attempts have been fruitless as well. On the other hand, Apple entered the mobile payment service with the launch of Apple Pay last year in October, and met success almost instantly. Apple Pay is already the largest and most popular mobile payment service in the United States with the Cupertino company working hard on expanding it to other regions of the world.