Anyway Google is now discontinuing the Google Prepaid card that is one of the funds for GW and the $10 credit will disappear on October 17. Plus if you don't use the credit by Sept 17 (US time) and you have to reset GW, then the credit will also disappear.
So there was strong motivation to use it.
Saw that Leuven in Wellington has a breakfast special of $7.50 and take GW (Mastercard Paypass) and so got up early, drove down with my son and had breakfast.
Went to pay and saw they had two type of EFTPOS devices - the usual swipe style and one with the Paypass reader. Of course I asked for that one. The cashier fired up the reader, entered the amount and I placed my phone on the reader. Nothing happened so she tried again and I fired up GW to see how I should use it. Turns out that while GW doesn't have to be running the phone does have to be unlocked. I thought I had done that but anyway, now the phone was unlocked, tried it again.
This time the transaction started, waiting for authorisation appeared on the terminal and my phone and eventually it completed, the entire transaction taking about 20s. I guess the authorisation had to take place on the Money Network in the US.

So it works, albeit not as fast as you would like but it certainly raised some surprise and interest with the Leuven staff.
Also the transaction rate seems pretty good. The meal was NZ$18.5 which showed up as US$15.28 which is an exchange rate of about 0.83.
As for the screen capture, the unsupported phone message is because the phone is rooted which I had to do to both get the phone back to the core Android build rather than the slightly customised build from Samsung HK so I could get the lastest Android releases and also so I could run Market Enabler to set my phone to be T-Mobile to enable GW.