Owners of NFC-enabled Android phones, KitKat and beyond, can use Android Pay by simply placing their phone against a store's NFC terminal.
Google named security as one of its top priorities for Android Pay. According to Dake Burke, Google's VP of Engineering, Android Pay generates a virtual account number for your debit or credit card so that your actual card number is never revealed to participating retailers.
Android Pay will work in over 700,000 stores across the United States, including Game Stop, Sports Authority, Best Buy, Walgreens, and McDonalds.
It'll also be enabled as part of other apps, including GrubHub, Groupon, Uber, and more. It's compatible with American Express, Discover, MasterCard, and Visa.
Fingerprint identification is also coming to Android M, which can be used to unlock your device or even authorize payments via Android Pay or for the Google Play Store.This kind of mobile payment service isn't new. Apple announced Apple Pay late last year, its own NFC-enabled payment system that works in conjunction with TouchID.
Check out our list of additional Android M features you can expect, and stay tuned for more developing news from Google I/O today and tomorrow.
Update: Google's introduction of Android Pay has several users asking what will become of Google Wallet.
Several sources are reporting this as a re-branding of Google's mobile payment system, with Google Wallet becoming more of a strictly "peer-to-peer" service app and Android Pay acting as a replacement with added features. We'll keep you updated as we learn more. Chloi Rad is a Staff Writer for IGN. You can follow her on Twitter at @_chloi.