Android Pay explained: How does it work and where is it available?

You now have yet another way to pay for goods from your mobile device.

This new mobile payment solution is a little more exciting than some of the others though, because it’s coming from Google. It’s called Android Pay, and Google first unveiled it last May. Four months later it began to roll out Android Pay across the US. The launch occurred gradually, and Google said it had plans to continue expanding it as well as add more features, banks, and stores.

According to The Telegraph, Google will finally launch Android Pay in the UK sometime by the end of March 2016.

Here’s everything we know so far about Android Pay…

Android Pay: What is Android Pay?

It’s a mobile wallet that can store your credit cards, debit cards, loyalty cards, etc. If that sounds a lot like Google Wallet, it’s because Android Pay is the new Google Wallet (only it’s supposed to be better, more convenient, and secure).

Android Pay: How does Android Pay work?

Setup

Look for the Android Pay app on your phone. It is preloaded on several devices, but you can also simply download it from Google Play.
Add a credit or debit card within the app. If you already have a card in your Google account, you can add it to Android Pay by confirming a few details. If you’re adding a new card from any participating bank, simple snap a picture via the app.
That’s it. Simply unlock your phone and tap to use Android Pay at any contactless payment terminal.

Physical stores

When Google first unveiled Android Pay, it said you would be able to pay for goods by simply unlocking your Android phone like you normally do (which also enables Android Pay to authenticate your transaction), then placing it near a merchant’s contactless terminal, and that’s it.

You don’t even need to open an app to process a payment. It just lets you tap and go, and then you receive the confirmation/transaction details on your phone. Also, when you pay at select retailers, your loyalty points and offers will be auto-applied at checkout.

But let’s not forget Google is an advertising company that’s also in the business of making partnerships with other companies. So, you might also get special offers piped to your phone.

Apps

Google has also been working with developers to get a “Buy with Android Pay” button added to their apps, meaning you’ll be able to tap that button and swiftly checkout, rather than having to enter your credit card and shipping address each time you make a purchase.

It’s not yet clear which apps will be available with Android Pay support at launch, but Google said it’s been partnering with top payments processors (like Braintree, CyberSource, First Data, Stripe, and Vantiv) to make integration easy for developers.

According to Google’s Android Pay website, apps like Chipotle, Domino’s, Dunkin Donuts, Etsy, Groupon, GrubHub, JackThreats, Lyft, and OpenTable support Android Pay at launch.

Google

Android Pay: Which devices are compatible?

Android Pay works with all NFC-enabled Android devices running KitKat 4.4+. It currently supports any mobile carrier and tap-and-pay location across the US.

Android Pay: Does it require a fingerprint reader?

No. And that’s because many Android phone makers still need to integrate fingerprint reader into their devices. Android Pay therefore also accepts a PIN code, password, or pattern in order to authenticate a transaction.

Android Pay: Which banks are participating?

Android Pay works with your credit and debit cards from the following US financial institutions:

• • • American Express, Discover, MasterCard, and Visa. These cards are issued by the following US banks and credit unions: American Express, Bank of America, Discover, Navy Federal Credit Union, PNC, Regions Bank, USAA, US Bank, Citi, Wells Fargo, and Capital One.

Android Pay: Which stores let you use Android Pay?

Simply put: You can use Android Pay anywhere you can use Apple Pay (or any place with a contactless terminal). Google said it works across 1 million US locations, including everywhere tap-and-pay payments are accepted, such as:

Google

Google’s Android Pay website has a list of stores – and it includes Best Buy, Game Stop, McDonald’s Petco, etc.

Android Pay: What about Google Wallet?

The New York Times said Google Wallet might be revamped as as a peer-to-peer payment app like Square.

Google hasn’t commented on that report, but if you’re an existing Google Wallet user, it said you’ll be able to access Android Pay through an update to your Wallet app.

Android Pay: Is Android Pay secure?

Theoretically, yes.

Google said it was working with leading payment networks and financial institutions in the US to deliver industry-standard security tokenisation. With tokenisation, the retailer receives a newly-generated, 16-digit virtual number instead of your actual account number. So, should there be another major credit card data breach at a retailer, you’ll at least know your card is safe.

Android Pay’s tokenisation is different from Apple Pay’s in that tokens aren’t generated in a secure chip within the phone but rather within the cloud. But if you’re ever in a place without internet, Android Pay will apparently still be able to access some tokens that are stored on your device, thus allowing you to pay for your goods and be on your merry way. Simples.

Android Pay: When will Android Pay launch?

US

Android Pay is already available in the US. You can download it from Google Play. It will also come preinstalled on new NFC-enabled Android phones from AT&T, T-Mobile, and Verizon Wireless.

UK

According to The Telegraph, Google will finally launch Android Pay in the UK sometime by the end of March 2016.

Android Pay: Want to know more?

Check out Google’s Android Pay website for more details.