Currently, smart phones are becoming indispensable for meeting the social expectation ofalways staying connected and the need for an increase inproductivity are the reasons for the increase in smartphone usage. One of the leaders of the smart phone evolution is Google’s Android operating system. It ishighly likely that Android is going to be installed in manymillions of cell phones during the near future. With thepopularity of Android smart phones everyone finds it convenient to make transactions through these smartphones because of the openness of Android applications. The malware attacks are also significant. Androidsecurity is complex and we evaluate an applicationdevelopment environment which is susceptible tomalware attacks. This paper evaluates Android securitywith the purpose of identifying a secure applicationdevelopment environment for performing securetransactions on Android-based smart phones.