At its I/O developer conference, Google announced a new application called Android Pay which will replace Google Wallet on one's phone.

In 2011, Google released its mobile payment system, Google Wallet, which enables the user to store debit cards, credit cards, gift cards and similar instruments. It promises to provide users not only a secured but also convenient way to manage payments as it is all packed in the Android phone. However, the application's reach was too limited and its features were outshined by the launch of its rival, Apple Pay.

Now, Google attempts to push the envelope even more, with the introduction of a new payment system called the Android Pay. The newly introduced application enables developers to integrate payments into their phone applications. It provides a way for the users to pay in real-world stores through a Near Field Communications or through apps.

According to Google, the new Android app will function in more than 700,000 store locations and will also be incorporated into more than a thousand applications such as Lyft, Domino's and Etsy. It features a more convenient method of payment as it does not require the user any other hardware to make use of the new system.

Other than that, Google's new payment system will also integrate with Android's security system which will not require any more separate passwords or PINs to verify every transaction. Once Android M, Google's next Android OS update, will be released, Android Pay will also let users make use of the its fingerprint system to permit payments with just a fingerprint.

The most notable feature of Google's Android Pay is its use of tokenization in making transactions. Through tokenization, the customer will use a one-time credit card number instead of the authentic account number in order to keep one's money as well as the transaction more secured.

Google's introduction of Android Pay might sound like Google Wallet is going away for good but according to New York Times, the old system might possibly be revamped as a peer-to-peer payment app. Similar to Venmo and Square, it will be a method for users to conveniently transfer money to each other's accounts.

Meanwhile, Android Pay is set to be rolled out sometime this summer.