At their I/O conference last week, Google outlines how customers will soon be able to pay "hands free".
Technical details have not been disclosed but the similar Square Wallet service used geofencing to connect customers to their phones for identification. The Square product was dropped last year after failing to win over either retailers or customers.
Hands Free, by Google
https://www.youtube.com/watch?feature=player_embedded&v=Qxet1VdpOQ4