Earlier quoted context omitted.
I tried to debug a google pay issue with a Bank once: - Bank told me to go to Google. - Google support told me to go to the Bank. - (... few emails later...) - Google support told me to make screenshots of the banking app and google pay. So have a second phone ready, or stop complaining :) A few years later and 3 phones later... it works again!
Google Pay requires SafetyNet verification, which means it only works with a Google-approved hard & software combination, so not with GrapheneOS for example... I hate that banks use this proprietary "standard" for NFC payments
If a malware were able to snatch the key material that represents the credit card outright or it could (by running as root) act to the TEE like it were Google Pay's NFC controller app, it would enable the actor controlling the malware to spoof the credit card on their own phone... and since tap-to-pay is considered authenticated, chances are next to zero you can dispute the payment.