About Android Pay

Once they have downloaded the app, users can connect Mastercard or Visa credit/debit cards to pay with. In the UK, HSBC, Lloyds Bank, Halifax, Bank of Scotland, First Direct, M&S Bank, MBNA and Nationwide are all supporting the app at launch - with a notable absence from Barclays, which has confirmed that it won’t support Android Pay in the future despite working with Apple Pay. Google promises that new banks will be added in the near future.

Google is hyping the security features of Android Pay: "By creating a unique virtual account number for your transaction, your name and full card details are never shown in the app, never stored on your phone, and never shared with the merchant." Moreover, Android users can remotely delete data or lock their devices if stolen, which is less hassle than cancelling numerous cards.

Apple Pay has become popular among commuters in London - earlier this year, the Telegraph reported that over 35,000 journeys a day were being made using smartphones, a number that has risen seven-fold since Apple Pay went online. Google clearly paid close attention, as this was probably a contributing factor in their introduction of a partnership with TfL to allow easy tapping in and out of public transport, helping commuters avoid juggling cards or tickets while on the go.

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What retailers need to know

The release of Android Pay in the UK puts Google in competition with other contactless services like Apple Pay, Samsung Pay and Barclay’s bPay. Although they are relatively late to the game, Google are likely to be a strong contender for most popular contactless service - 60% of UK smartphone users have Android devices, and Google is pushing hard for signups with special offers and partnerships with companies such as Starbucks rewarding those using Android Pay with new offers every month. This provides a strong platform for Google to become a leader in contactless payments.

Like Apple Pay, Android Pay charges banks rather than retailers, so you don’t need to worry about any lost revenue at this stage. You can also add it to native Android apps for easy payments, providing convenience for your customers and hopefully improving conversion rates.

The Android Pay app doesn't need to be open in order to make the transaction, and payments under £30 can be made without unlocking the phone, as long as the screen is on. The app is able to make payments over £30, but in order to enable customers to do this retailers must ensure that their payment terminal is configured properly and that their payment provider supports the latest network specifications.

Last year, Apple provided a list of a number of retailers that would be accepting contactless payments of over £30, but many are yet to revamp their contactless infrastructure. This is a good opportunity for retailers who want to get ahead and allow customers to make payments over £30 quickly and easily with a tap of their device.

For retailers, it should be a priority to simplify their payment process and provide convenience by allowing - and indeed encouraging - customers to pay how they want. By not supporting Android Pay, they could be missing out on an easy way to improve the customer experience, as well as their own conversion rates.