Here's a rundown of how these two mobile wallets work - and where they seem to be headed.
With Google Wallet, you enter your credit and debit card information into the app. The information is encrypted and stored on a special chip called the Secure Element.
When it's time to make a payment, you open the Wallet app and select which stored card to use. Enter your PIN to approve the transaction, and then tap the back of your smartphone to a payment terminal.
The terminal and your phone wirelessly connect and process the transaction using Near Field Communication. This is accomplished with an NFC chip in select Android smartphones. If there's a Google Offer connected with the merchant, it will also be redeemed automatically.