Will You Pay With A Google Card?
TechCrunch obtains imagery that shows Google is developing its own physical and virtual debit cards. The Google card has an associate checking account with it. It will allow users to buy things with a map, mobile phone or online.
The card connects to a Google app with new features. The app lets the users easily monitor purchases, check their balance or lock their account. The card will co-brand with different bank partners, including CITI and Stanford Federal Credit Union.
Google Debit Cards: New Mode Payment
A source confirmes that Google has recently worked on a payments card. Its team hopes that the card will become the foundation of its Google Pay app. It helps Google to rival Apple Pay and the Apple Card.
Currently, Google Pay allows only online and peer-to-peer payments by connecting an issued payment card. A Google Pay Card will vastly expand the app’s use cases, and Google’s potential as a fintech giant.
Google The Financial Services Company?
By building a smart debit card, Google has the opportunity to unlock new streams of revenue and data. It can potentially charge interchange fees on purchases made with the tag or other checking account fee. However, it will split all those with its banking partners.
Depending on its privacy decisions, Google can use transaction data on what people buy to improve ad campaign measurement. Additionally, brands may be willing to buy more Google ads if the tech giant can prove they drive a sales lift.
The Long-term Implications
The long-term implications are even higher. While once the industry joke was that every app eventually becomes a messaging app. More recently, it has been that every tech company eventually becomes a financial services company.
A smart debit card and checking accounts can pave the way for Google. It helps in offering banking, stock brokerage, financial advice or robot-advising, accounting, insurance or lending.
Google Debit Cards: The Main Strategy
For now, Google’s strategy is to let partnered banks and credit unions provide essential financial infrastructure. It plans to navigate regulation while building smarter interfaces and user experiences.
One day Google may inevitably cut out the banks and take all the spoils for itself. Google launches a Wallet debit card in 2013 as an extension of its old payment app Google Wallet. However, it shut the card down in 2016.
Concern About The Finances
The people around the world are having more concern about their finances amidst the coronavirus economic disaster. Hence, a debit card with more transparency and controls can be appealing.