updated 12:10 pm EST, Mon March 5, 2012
Google Wallet no longer supports rooted phones
Those with rooted Android handsets will no longer have the ability to use Google Wallet after an update that began rolling out this weekend. Droid-Life learned that a new yellow notification bar began appearing on rooted Android handsets with the Google Wallet app loaded onto them, informing the device is no longer supported. A link to a web page explains that the app won't work because the handset's security has been compromised due to the presence of "unauthorized" software.
The first security flaw with Google Wallet was found on rooted phones, which Google quickly fixed. A fix involving PIN codes was relatively simple, but new ways of accessing the account in the future may not be as straightforward. Google's all-encompassing policy is thus a way to protect itself against any future attacks on rooted phones.
What's also not yet clear is whether Google Wallet users with rooted phones can still use Google Wallet, albeit at their own risk, or if they can't make payments at all. The source reported still having access to their account and seeing available funds on the prepaid card.
Also, at least one user is reporting that the message hasn't appeared on his phone, which is rooted but isn't running a custom ROM.