If you happen to keep money in your Google Wallet account, your cash is now protected. According to a statement provided to Yahoo Finance, Google is now storing Wallet funds in banks insured by the FDIC (Federal Deposit Insurance Corporation). That means if Google (or one of the banks that it keeps your funds in) goes under, the US federal government will have your back.
Services like Google Wallet typically are not FDIC insured. The federal system, designed during the Great Depression, is made to protect up to $250,000 of savings and deposits at banks. It was designed to instill confidence in the banking system and encourage the American public to store their savings in banks. Since the primary purpose of services like PayPal and Google Wallet isn't to store money, a lack of FDIC backing hasn't been a major concern. (PayPal funds are not FDIC insured.) Google Wallet's terms of service don't yet mention the change to FDIC-insured accounts, but according to Yahoo Finance the change has been confirmed directly by Google representatives.