Google is preparing to launch a payments API that will enable third party developers to embed in-store and in-app payments within their apps, according to press reports.
Citing a source, Ars Technica says that Android Pay will be unveiled at the Google I/O conference in May.
The feature will take advantage of the Host Card Emulation (HCE) technology adopted by Google in late 2013 to let developers offer customers the chance to pay at the point of sale with a tap of their handsets.
Customers upload their card information to apps taking advantage of Android Pay and can then also make one tap payments within apps.
Ars Technica's source says that Google Wallet will continue to operate, with customers able to link their accounts to third party apps running Android Pay.
Last November Google decided to retire its Google Wallet service for digital goods but does still offer an Instant Buy API intended to make buying in native Android apps fast and easy.
Earlier this week the tech giant also moved to revive the flagging wallet service by getting its app pre-installed on handsets sold by America's biggest telcos and buying in technology from their rival offering, Softcard.