Found this yesterday and thought it should be posted. Note that cardholders won't lose the balance on their prepaid cards; they just won't be able to spend it from the cards after October 17, 2012, and will have to request a refund through Google Wallet.
Google Wallet to discontinue prepaid cards in October | Internet & Media - CNET News
Google Wallet to discontinue prepaid cards in October | Internet & Media - CNET News