Poor Google Wallet and the beating it has taken over the last week. First it was a “vulnerability” if your phone was rooted which was then followed by a non-rooted issue that allowed someone who stole your phone to access prepaid funds. To be fair to Wallet, none of these are actually issues unless you lose your phone and fail to protect it up front at the lock screen. But since attacking a product that is trying to push boundaries makes great headlines, this is where stand. Google has temporarily disabled prepaid cards in Wallet until they can provide a fix that won’t allow a user to simply “clear data” on the app and then re-access your funds.
Again, Google Wallet is still safe for making payments with credit cards, you just can’t use prepaid cards for the time being.
Via: Google Commerce