The card details were stored on the secure element but the pin was not and because the authentication is not done using the secure element it is trivial to bypa

The card details were stored on the secure element but the pin was not and because the authentication is not done using the secure element it is trivial to bypass: http://cybersecurity.mit.edu/2012/10/google-wallet-overview-threats-and-security-measures/ http://cybersecurity.mit.edu/2012/10/google-wallet-overview-... The current implementation of Google wallet stores your card details in a google server which protects against these attacks but is not a viable business model (google are making a loss on every transaction since they pay it and then bill the customer themselves).