Update: Google Buys Groupon Clone And Launches Wallet In Quest For Commerce

Google (NSDQ: GOOG) at the moment gets the vast majority of its revenues from its huge advertising business, but today we saw two examples of how its trying to diversify for a later day. It has bought the German Groupon clone Daily Deal and it has started rolling out its mobile payment service, Google Wallet.

That raises questions about how and when Google plans to link up these new commercial operations.

Daily Deal, which already has operations in Germany, Austria and Switzerland, also has plans to expand to Belgium, Luxembourg, the Netherlands and Scandinavia, according TNW, which first reported the acquisition.

Financial terms of the acquisition have not been disclosed.

Google itself has not confirmed the purchase directly, but a note on the Daily Deal site from the company’s two founders, brothers Fabian and Ferry Heilemann, indicates that the business will become a part of Google’s existing daily deals effort, Offers:

“What began as a two-person startup less than two years ago has transformed into a trusted platform to connect businesses with consumers,” the write. “By combining our expertise with the Offers team at Google, we hope to expand our efforts to provide even greater deals to consumers.” The site now also redirects all press contacts to {encode=”[email protected]” title=”Google”}.

For the moment, Google Offers is only available in cities in the U.S. That means the purchase of the Daily Deal site could give Google an easy route to ramping up the service in Europe as well. Whether that will mean growing the Daily Deal footprint even further than Heilemanns’ plans for the continent, or buying other local deals sites, remains unclear at the moment.

Google Wallet. Meanwhile, just as the NFC World Congress event is kicking off in France, it looks like Google has started to roll out its new payment service, Google Wallet.

This was announced back in May and initially will work in the U.S. only, on the Nexus S device being sold via Sprint (NYSE: S) and in cooperation with MasterCard.

As with the Daily Deal buy, Google has not confirmed that Wallet is going live, but a report in Tech Crunch over the weekend showed a leaked document alerting retailers that the service would start today, September 19. Now pictures are starting to emerge advertising the service in-store.

That the two news items coincided on the same day also raises questions of how — and when — Google will link up Offers and Wallet: while right now Google’s Offers service can be used directly on an Android phone through the Google Shopper app but the simple, contactless payment services of Wallet has only just gotten off the ground.

Update: Google has officially announced the launch of its Google Wallet payment service today. The service, which uses the Nexus S 4G on the Sprint network, requires users to have a Citi MasterCard credit card and or a top-up from another credit card to the Google Prepaid Card — and they will need to find points of sale that accept PayPass NFC payments. Those who sign up for the service before the end of the year get a $10 credit.

According to a blog post from Osama Bedier, Google’s VP of payments, Visa, Discover and American Express cards and POS readers will be added in “future versions” of the Wallet.

Google Offers will automatically sync to a person’s Google Wallet account.

According to figures from Yipit last week (via Reuters), total revenue from Google Offers fell by 23 percent between August and July; the number of deals on the service went up by 22 percent in that time. Revenue per deal fell 37 percent, as the number of vouchers sold per deal was down by 46 percent.

There is a natural connection between the two kinds of services: In May, when Wallet and Offers were announced by Stephanie Tilenius, Google’s VP of commerce, she described how Wallet would be about more than just payments, and would also be used for loyalty programs, check-ins and other transactions. Meanwhile, the promise of Offers would be about getting them on the go. Google believes that e-commerce rvenues will exceed $1 trillion by 2013, and it wants to make sure it is in on that game.

Google is not the only one working in these areas: on the deals front it is already competing against dominant Groupon, big LivingSocial, and fast-rising Amazon (NSDQ: AMZN), among many others. NFC is still nascent although today Orange in France announced that it too would start to roll out the first a fourth device for its commercial NFC service, the Samsung Galaxy S II. (Samsung perhaps the unspoken winner here, with a role in both NFC news announcements today.)

In its last quarterly earnings report, Google noted that it made $6.562 billion from its advertising business, or 96 percent of its total revenues.