The updated application debuted Wednesday.
“Along with our bank partners, we were looking to make banking more relevant for the mobile-first generation,” Caesar Sengupta, general manager of payments at Google, told CNBC Wednesday.
"It will help our partners make banking more approachable to that generation, and not only make it more relevant, but make it more fun.”
Google will have so-called Plex checking and savings accounts, which have no monthly fees, overdraft charges or minimum-balance requirements.
The accounts are free to open and in-network ATM use is free.
The Mountain View, Calif., search, advertising and tech giant says Google Pay will never sell users' data to third parties or share transaction histories with the rest of the company for targeting ads.
The timing of the announcement comes as big tech faces increased scrutiny from federal lawmakers.
In October, the Justice Department filed a lawsuit against Google alleging that the company has unlawfully maintained a monopoly in search by leveraging its platform to cut off competition from rivals.
Alphabet shares were down 0.8% to $1,747.71 in afternoon trading Wednesday.