Now, here is a partnership that could really get Google Wallet to take off. Subway has teamed up with Google's NFC payment system, Google Wallet to offer the service to customers. Participating Subway restaurants will be setup to take the mobile NFC payments at over 7,000 locations by April of 2012.

Originally, it looked like only a few coffee shop and upper-scale businesses were going to try out the Google Wallet service, which would have made for a slow adoption rate. Having a "mass market appeal" company like Subway on board, could speed things up a lot more. Of course, right now the only mobile phone with the feature is the Samsung Nexus S 4G, so we will obviously need to get a few more devices before the service really takes off...

Here is the press release below:
SUBWAY® restaurants has partnered with Google to be one of the first merchants to accept payments through Near Field Communication (NFC)-enabled mobile devices. Google Wallet is an Android appliation that stores digital versions of your payment cards, along with your coupons, loyalty cards and gift cards, on your phone. Customers can "swipe" their phones to make purchases. Google Wallet is compatible with the Nexus S 4G smartphone, available on Sprint®.

Google has provided SUBWAY® restaurants in the US the ability to accept credit card payments from compatible NFC mobile devices.* Initially, Google Wallet will support MasterCard PayPass cards and the Google prepaid card.

In addition to credit card payments, the second phase [of] this project (coming in 2012) will integrate full SUBWAY® Card functionaly, as well as restaurant promotions and coupons, with the Google Wallet application.

Google Wallet Rollout
Restaurants in Washington DC, San Francisco, Los Angeles, Chicago and New York, and other locations around the country were the first to receive the NFC reader device. By the end of 2011, approximately 7,600 US restaurants will be accepting mobile payments. IPC will ship the NFC reader devices directly to participating restaurants. In addition to the readres, FAF will send each restaurant a marketing kit that includes support materials from FAF, Google and MasterCard. Do not display the marketing materials until you have received the reader. DAs in participating markets will be contacted by IPC with instructions and shipment information.

* Because NFC devices do not expose transactions and are handled by Google, there will be no End-to-End Encryption updates or additional hardware needed to participate in Google Wallet.
Source: AndroidCentral