Google is bringing together payment networks, banks and retailers for the launch of the service, Pali Bhat, senior director for Android product management said on the Android official blog.
Android Pay is a mobile payment system that uses near-field communications (NFC) technology. NFC uses radio waves to transmit data between devices and allows contactless payments to be made.
The service will support MasterCard and Visa credit and debit cards from many UK banks and building societies, Bhat said. It will be possible to pay using an Android mobile phone in many shops, including Boots, Costa Coffee and Waitrose, as well as on all Transport for London services.
The service will also allow payment through several retail apps, Bhat said.
Google is working on making it easier for developers to include the system in their apps, he said.
In the US, Android Pay has 1.5 million new registrations a month, Bhat said.
Rival service Apple Pay launched in the UK in July 2015, while Samsung said that its Samsung Pay service is coming to the UK in 2016, but has not given a specific launch date.