Android Pay is Google's new payment system, announced at Google I/O 2015 which brings a new secure payment option to Android users. It will work through NFC and Host Card emulations for older devices, and on new devices users will be able to authorize payments through their fingerprint. Google's VP of Engineering for Android, Dave Burke, said that "Android Pay is focused on simplicity, security, and choice." Using Android Pay will be quite simple.
Unlock your phone, set it on the scanner, and the payment is made. Once a card is entered it will create a virtual card number, and not your actual number. They are working with leading financial institutions to enable payment support, and they are also working with carriers as well. Android Pay will work at more than 7000 stores that already support contactless payments. Additionally, users will be able to make in-app payments using the service for apps like Uber, Groupon, Lyft and a variety of others.
More: Official Android Blog