After confirming with Google, we've learned that Android Pay for Android Wear will not function if your paired smartphone has an unlocked bootloader. This is not surprising, but it is disappointing nonetheless. This is despite the fact that we know the actual Wear app runs totally independently on the smartwatch, with the phone at most acting as a data pipe over Bluetooth. But the phone is integral in the actual setup process for Pay, and we suspect this may be where the limitation comes into play.
If you have an unlocked bootloader, the Android Pay app on your phone won't even let you add a card, and setup will fail, notifying you that your device is unsecured.Read More