The first NFC-equipped to take advantage of it is Sprint's 4G Nexus S, with more to come, or you can use an NFC tag especially in the back of the phone, like the label of Bling. Google will subsidize the merchants to upgrade their point of sale to receive payments NFC.
For mobile payment backend Google Wallet is associated with MasterCard PayPass system for processing payments, working for some of its integrated chip cards to wave in front of the terminal and pay. Citigroup is the provision of banking services behind the project, and what retailers are, Google unconditional portfolio will be available at Macy's, American Eagle, Subway, and The Container Store, among others.
Google announced Wallet, Sprint 4G Nexus will be the first phone to take advantage of it
Google does not charge extra to the usual discount rate MasterCard is the burden of paying with a credit / debit cards, but expects to make some money out of it by linking mobile payments calls Google offers, coupons and loyalty programs. You may be at Macy's, for example, tap the phone in the Google brand offers and coupons from today or special offers, then use them in payment.
Regarding security concerns, Google explained that Google acts as a portfolio of virtual credit card, you can call on or off, if your phone is lost or stolen. Still, you have to enter a password PIN for payment to take place, as if you are paying with a debit card to enter your PIN code, plus if your phone is lost there is nothing to call MasterCard anyway.