The Android Pay system, Google’s second attempt to encourage users of its Android smartphone software to use their device for contactless payments, was rolled out in the United States last September.
Google will announce that Android Pay will be available in Britain from the end of next month, industry sources said.
It signals a major boost to the mobile payments industry, as Android smartphones account for more than half of such devices sold in the UK.
The technology works in a similar way to Apple Pay, allowing users to load their Visa and MasterCard credit or debit card details on to a smartphone equipped with a Near-Field Communication (NFC) microchip.
Smartphone-wielding shoppers will then be able to pay at retailers equipped with a contactless payment terminal, with their identity verified by their smartphone’s fingerprint reader.
As well as opposition from Apple Pay, which has taken an early lead in mobile payments, Android Pay will also face competition from Samsung, the largest manufacturer of Android devices.
Samsung Pay is due to launch in Britain this year, too.
The UK is seen as a battleground for mobile payments because of the high take-up of card payments and wide availability of contactless terminals.