Google is rumoured to be preparing to distribute millions of custom mobile devices to small businesses around America in order to compete with services like Facebook, Yelp and Foursquare. These devices will let customers check-in and rate the businesses. Customers may also be able to purchase items via Google Checkout.

The number of devices to be distributed could be as high as eight million, and if the plan is successful the scheme could be rolled out to the UK.

Google is seeking to establish a strong position in the potentially lucrative local business market for both checkins (Foursquare, Facebook) and business reviews (Yelp). Companies such as Groupon have very successfully straddled the gap between online promotions and 'real world' sales and are growing rapidly.

The as yet un-named devices are expected to let customers to check in to a business such as a restaurany, shop or service point to leave reviews - and possibly even purchase items via Google checkout while they are there. It is speculated that Google will give these first devices away for free, but might charge once the product is more established.