Not always. Google Wallet on phones and tablets (e.g. Nexus 7) with NFC also have a hardware aspect.
For me they will need to tie it to a credit card. Paypal, Google Wallet, etc. have nothing like the protectiions of a credit card. If someone hacks your CC, you don't loose anything. If someone hacks your paypal you are ass-out.
Tie your paypal or google wallet to a credit card. Then it's protected. It's not rocket science.
