It's powered by nfc
There is no doubt that NFC has been the driving technology behind a lot of technology payment services for quite some time. As well for Google Wallet. But the move to an open API also powered by NFC means they are starting being serious in this field.
If you take in mind that Apple pay is also using NFC, it seems clear that this mobile payment technology is not going to use things like QR codes or SMS messages. This also means that any business should consider upgrading your point of sale to accept NFC, if you haven't already.
Android pay replaces google wallet
But Google Wallet is not dead.
Google Wallet debuted four years ago as an early player in mobile payments. It was one of the first concepts to let people make secure online and in-store payments right from their smartphones and sadly a good example of what can happen if a technology arrives too early to matter to consumers and businesses.
Google Wallet wasn't exactly the most beloved payment service to use on a mobile device, especially now when the Apple Pay has been released. However, Android Pay looks to change that as much of the same conveniences of Apple Pay are coming to Android Pay as well. Here we get to very interesting difference between those two.
Android pay is an open API
For those who are not familiar API stands for "application programming interface" and is a fancy way to say that any developer can use Android Pay in their applications. That means that probably soon there will be tons of mobile apps that leverage Android Pay to accept mobile payments. If your business has an app, you could make it simple for your customers to add their credit card information to the app and simply tap to pay, either via the app or in-store.
With all new technologies, especially the one which have access to your money, is always a doubt about security in consumer point of way. While there is some misconception around the security of mobile payments, the fact is that NFC is a very secure technology. Android Pay specifically will rely on tokenization, a data security technology that essentially replaces sensitive data with non-sensitive “dummy” data to prevent theft or misuse. Android Pay will make it easy for stores and restaurants to accept mobile payments securely, and even to build secure mobile payments into their own apps.
It's hard to say now if Android Pay will succeed where Google Wallet have failed. It is definitely a new approach and Google is a big player so it will be interesting to see how things will and up.