Apple Pay launched late last year and has been successful. It has gained acceptance in some retail stores and has managed to gain the support of the largest banks (opens in new tab) in the world.
Looking to cut into Apple's profits, Google is developing (opens in new tab) a new service called Plaso. Plaso will work in a similar fashion as Apple Pay, running inside of Android. Google will need to be creative to catch up to Apple Pay, however.
Google already has its Google Wallet system setup, but it's never gained great popularity. While it isn't official yet, Plaso and Google Wallet could work together to help speed the development and basic frame work for Plaso.
One minor problem for Google will be NFC technology. Apple has integrated NFC technology into the latest iPhones, which can be used to make public transactions much faster and easier. In addition, the Apple Watch, which will launch in the near future, also has NFC technology. Although some Android devices have NFC, it isn't necessarily something that Google can enforce across all devices.
According to NFCWorld.com, the majority of devices from Google, LG, HTC, Motorola, Samsung, Sony and ZTE, which make up the bulk of Android smartphone sales, have NFC technology included. This is fortunate, because it will minimize the impact of phones which lack this ability and should still allow Plaso to grow quickly.
Square, another company which has a device for taking credit card transactions, is also attempting to regain lost ground. Faced with fierce competition from Paypal, Amazon, Cupertino and others, Square is developing a standalone tablet device. This is mostly in response to Apple Pay, because Square's stand reader device doesn't work well with Android products.
With Apple Pay continuing to grow, it's hard to say if these new products and services will be able to catch up, but it's good to have some competition in the market.