To say Google Wallet is moving slow might be an understatement, but Google continues to make improvements. Today is a big one in that we can now use any major debit or credit card we want like Visa, MasterCard, American Express, and Discover. They also announced they are moving card storage to highly secure Google Servers. This will make it easier for banks to add their cards to the Wallet app in a few weeks.
The other advantage to the cloud is you can now remotely disable your phone from using Google Wallet in the event you lose it. You simply go to the Devices Section on the Google Wallet website and you select which device you want to disable. You will still need to use a pin for your transactions, which is the only thing that will be stored on your phone. I still recommend using a pin lock or pattern lock for overall access to your phone to give you complete security in the event you do lose your phone though.