• Google Wallet and near field communication (NFC)

• Digital wallet

• Google Wallet and near field communication (NFC)

During transaction google phone transmit your information useing NFC .

They claim it is secure because the information stored on a separate chip within the phone called the NXP PN65, also known as "The Secure Element."

The separate chip cannot be tampered with, since it will self destruct if removed, and it's only in use when the pin number is unlocked. If a user loses their cell phone, Google says it would still be secure because they would have to crack the pin.

"If a user enters the PIN incorrectly too many times, the Secure Element is disabled and cannot be used for payment until it has been reset by a combination of the issuing bank, the Trusted Service Manager, and the user.

Resetting the PIN requires the user to re-provision their credit cards to the Wallet, thereby forcing a would-be thief to provision all the card credentials from scratch," said Osama Bedier, vice president of payments at Google.

Google went as far as to say the security element goes beyond what's possible with traditional wallets and cards. Combined with the convenience of having all of your financial data stored on a single device and being able to pay for things with a tap of your phone, Google is betting heavily on digital non-contactless payments.

NSC :- initiator and a target;operates at 13.56 MHz , distance of 4 cm or less

/KP

Refrence: http://www.google.com/wallet/