NFC Payment System (Google Wallet) - Great Convenience, or Huge Security Risk?

Google’s showing off a demo of their NFC payment system, Google Wallet. I’m intrigued, and they seem to have really paid a lot of attention to security.

I’ve read criticisms both from a security standpoint, and from a “giving the carriers too much control” standpoint.

I searched and didn’t see anything, so apologies if this is a duplicate thread topic, but I’m curious what you guys think.

I’ve really been wondering about NFC payment systems. The credit card companies have been trying for a quick contact or touch-less system for years (e.g., MasterCard PayPass). It’s finally starting to show up in a few retailers around here, and I quite like it. What does the Google solution give me instead? The ability to not carry a card in my wallet? Or not carry a wallet at all? Unlikely, due to the fact that I need to have my Driver’s License and School ID card with me all the time, so not much of a difference in terms of weight.

I’m usually the first to adopt new payment technologies (e.g., the RFID tag for payment at the pump), but I don’t understand the benefits of having it built into a phone.

Google License is next.

Lack of NFC got you down? Google appears to be working on a physical google wallet “credit card” that’s a proxy to all your other credit cards.