I've used google wallet for years and basically came to the conclusion, that outside of novelty, it doesn't offer any benefits over a card. And it's often faster to just use my card than to pull my phone out, unlock it, make sure the app opens and the reader/phone do their connection thing.
As a partner in a small business, who uses a service like square, adding mobile payments is something we'd like to do but we aren't buying hardware to support it, it makes no business sense.
I've also used Wallet for a couple of years and for a while I was using it whenever possible. Usually, my phone is quicker to grab than pulling out my wallet and finding the right card, etc. Not by much but slightly easier.
Likewise, it was a minor novelty at first so I enjoyed using it. Just tap, pay, and a receipt scrolls up the screen.
But then a bunch of my normal shops had issues when their POS provider disabled Google/Apple options to push their own. Also, some places where it should work, the terminal was broken and only accepted swipes. Then there's the paper receipt that they still hand you on top of the one you already have in your email. Still have to sign the slip. Basically the benefits of electronic payment end up negated by the continuation of paper receipts and signatures and are again relegated back to novelty status.
I think I mostly stopped using Wallet after a few attempts failed due to faulty POS terminals or changing vendor policies and I had to put the phone away and dig out the card. At that point, I wasn't just using a slightly less convenient method. I was using it after failing to use the slightly more convenient method.
If POS vendors actually had any pressure to properly support Apple/Google payment systems I'd go back to using it in a heartbeat but since they don't directly suffer from poor performance (as if some chain store is really gonna hound the POS company because a segment of their customers was mildly annoyed) there is little pressure for them to improve.
Stores themselves might be pressured because they directly face the public but there's not enough motivation to invest the resources when your customers are Rite Aid, Best Buy, Safeway, and Home Depot. Those companies only care that the POS works most of the time and doesn't cost too much.
As a partner in a small business, who uses a service like square, adding mobile payments is something we'd like to do but we aren't buying hardware to support it, it makes no business sense.