Currently going on is Google’s annual I/O developer conference and it has announced Android Pay. Following Apple’s move back in September last year with Apple Pay, Google has launched a similarly name service called Android Pay. Google has been in this space for a while now with Google Wallet but it was getting a bit long in the tooth and no one really used it much, as it had poor integration and a lot of phones didn’t have it preinstalled.

So to get back in the game, Android Pay takes a new approach. Android Pay is also going to have deep integration with Google Play. Google has also promised a secure system, akin to Apple Pay where the system creates a virtual account number and doesn’t use your actual credit card details also Android Pay makes it so much easier to pay at the store using NFC and also developers can use the APIs to integrate the payment technology into their apps. The Android Pay API can be used, rather than using PayPal.

However, Android Pay requires an internet connection to operate, as Google can’t control the phone manufactures and to work offline, the phone would require a secure enclave, like the iPhone 6 and Apple Watch have when using Apple Pay, this enables it to work offline.

To make sure this doesn’t go down the same route as Google Wallet, the company has partnered with a section of the phone networks. Google has partnered with AT&T, Verizion and T-Mobile, they will pre-install the Android Pay technology on the devices that they sell which ruin Android KitKat or later, that have NFC built in. While the launch partners in stores isn’t as much as Apple Pay, Android pay has partnered with McDonlad’s, Subway, Gamestop, macy’s, Nke, Office Depot and more. But both services will end up helping each other, as with both Apple and Google in the mobile payments space, this should encourage more stores, banks and credit card companies to enable and accept both services.

Google Wallet is going to still exist, but more as a paying a friend type service, similar to Barclays Pingit system in the UK.