New Google Pay App Will Compete With Banks

Mish

A New Google Pay relaunch is available and it will compete with banks.

 “Early Access” Invite-Only

The “Early Access” is Invite-Only and targets Millennials and Generation Z but it will soon be available everywhere.

The app shows friends and family you can pay directly through the app at the top of the screen with nearby businesses that accept Google Pay appearing below. That includes restaurants where users can both order and pay for food through Pay. If you’ve paid to that restaurant from apps such as DoorDash using Google Pay, you’ll see your order history on the page too.  

Beyond restaurants, the new Google Pay can also help you pay for gas at select gas stations and even help pay for parking, all from your smartphone. 

The new Google Pay is about more than just spending money, though, it’s also about managing it. Google has added a new feature that allows users to connect their bank or credit cards using Plaid. When enabled, Pay can update account info with your bank, show balances, and even track payments and transactions on those cards. The Insights tab can show how much money you’ve spent and how much you have, as well as searching for transactions quickly.

What about NFC payments? The heart and soul of the old Google Pay is still very much available, but in a different sense. At the top of the UI there’s a card indicator for your primary card and tapping it allows you to swap cards, view tickets, and access gift cards or loyalty cards. It’s a bit more cumbersome, though, which might irk some users.

Say Hello to Google Pay

All Encompassing Money App

The Verge reports Google Pay Relaunch Makes It an All-Encompassing Money App.

Google Pay for both Android and iOS is relaunching with a giant array of new features. It turns the app from something that most people think of as a tap-to-pay card repository or peer-to-peer payment system into a much more ambitious service. The new app begins rolling out across the United States today.

The new version of the app will have three new tabs: “Pay,” which includes peer-to-peer payments as well as your transaction history using tap-to-pay; “Explore,” which will be a place where Google will offer deals and discounts; and finally, “Insights,” which will allow you to connect your bank accounts to get a searchable overview of your finances.

In 2021, Google will partner with some banks to directly offer fully online checking and savings accounts inside Google Pay — a service Google is calling “Plex.”

Not all of these services are strictly new for Google, but this will mark the first time they’re unified into a single app. In doing so, Google Pay is now arguably a direct competitor to a wide array of other apps and services, including Apple Pay, Samsung Pay, PayPal, Venmo, Square Cash, Intuit’s Mint, Simplifi, Truebill, Shop, and also online banks like Ally. That is a lot of companies that will have to contend with Google making a high-profile push into their market.

Google tells me that it has a policy to not sell or share data to third parties and that it will not “share your transaction history with the rest of Google for targeting ads.” It will also have a first-use experience that will present a series of privacy prompts and settings options. Unlike Apple Pay, Google’s servers will have access to your data so it can be analyzed and made searchable for you in the app — though the company assures that it’ll be strongly encrypted.

Google tells me that it will not share any data with these retailers — though, of course, if you end up using one of these offers, that retailer will know you did because you’re spending money there.

All of the deals Google showed me consisted of cashback offers. That’s an important point because the cash that comes back will go into a Google Pay account. You’ll need to transfer it out if you want to deposit it into your bank account.

Plex

Google has lined up 11 banks and credit unions to partner with, allowing you to pick the one you prefer. It also says that the checking and savings accounts will have no monthly fees, overdraft charges, or minimum balances.

Who Owns the Customer?

In one sense Google does not directly compete with banks because accounts are still tied to a bank.

But it is Google that really owns the customer and the data and it will be Google that will collect the fees (or the bulk of them if Google has to share), not the bank. 

Google will "sponsor" deals and make a tiny percentage off the transactions. 

The app requires support from retailers, but whether they like it or not, retailers will be forced to go along or lose business.

Expect quick adoption.

Also expect moans from those who already think Google is too big and want to break it up. 

But we should all cheer. If it benefits the consumer, and this does, it's good news.

Mish

Comments (26)
No. 1-16
Eddie_T
Eddie_T

I guess it’s a good thing I went ahead got my first smart phone last week, finally. It’s an iPhone 8....not rushing into anything.

Not only can I now use my phone to send selfies and pay for things, but I can read the QR code menus that have become the norm in every restaurant since COVID.....my real motivation.

Millennials like to use their phones to pay....I suppose we’re gonna go there whether I want to or not.

shamrock
shamrock

I've seen those types of asset manager apps before and they connect to your financial institution using the same username and password that you do. Disconcerting to say the least.

davebarnes2
davebarnes2

I think it might a threat to Venmo, etc.

Johnson1
Johnson1

The big question....will it allow you to pay with Bitcoin? ;)

BornInZion
BornInZion

"Google tells me that it has a policy to not sell or share data to third parties"

Haw haw HAW!

RonJ
RonJ

I still mostly just use cash.

"Google tells me that it has a policy to not sell or share data to third parties and that it will not “share your transaction history with the rest of Google for targeting ads.”"

Google tells me- they can say that all they want. I have no reason to believe that it is true.

Felix_Mish
Felix_Mish

Does anyone else here find the bank web sites to be poorly built? My main three, Chase, BofA, Citi, are bad, worse, and unusable, respectively. Not that Google has the world's best customer service.

Key question: Does Google subsume the other financial institutions, or do you, when you have a problem buying a candy bar, have to contact a half dozen different banks or whatnot to resolve the problem?

One might presume Google has organized Pay to be spun off, whether the spin is forced by governments or by Google, itself.

Felix_Mish
Felix_Mish

0:36 "What if understanding your finances didn't take a weekend?"

Right. Hasn't taken a weekend for me. Several decades and still working on it.

Well, experience says the best ideas are often hilarious on first thought or encounter.

EGW
EGW

I'll probably stick with my credit union.

Doug78
Doug78

My credit card does most of that already and why should I add another middleman in the transaction process? especially one like Google? Also I haven't used cash for a few years now. Amazon by the way is pushing for something similar I hear. Since I am already in Amazons' payment ecosystem I would prefer to use theirs. Google has some diversification problems. Most of their revenue still is from ads on their search engine like 10 years ago. Their stock is under-performing their peers and the last figures on Google searches were not good.

sunny1245
sunny1245

Mobile pay software is a security risk if connected to one's bank acct. I NEVER use them! I do use PC online payment via bank web page with 2 step verification!

anoop
anoop

i'm trying to wean myself off google, not sink even more into its billions of tentacles.

KidHorn
KidHorn

I use whatever credit card gives me the best cash back offer. It would be nice to use a single password protected phone instead of several unprotected credit cards, but I mostly buy online, so no advantage there.

Jumbotron
Jumbotron

Meh... all the "All Seeing Google" FUD is non sense. The NSA has been "Man in the Middle of all things since the 70's. They know more about you now than Google ever will. That said, I think an interesting thing about Googie's new more massive foray into digital banking is how they are simultaneously becoming the front end for so many banks who may want to keep their own IT costs down by not having to spend so much on designing their own apps or having to do it so often. On top of that for some Big Banks like Citi they know they will NEVER get some depositors' money because those people will NEVER sign up for an account with so many junk fees even for a simple checking account. This way by pairing with Google, Citi STILL gets the money they wouldn't already get because of stupid fees while having Google give a better than Citi experience for the users of the Google App.

Also...and this hasn't been reported at all...one of the "smaller" banks that is partnering with Google is BBVA. Well...BBVA just got purchased with cash by PNC. So in 6 months time when the deal completes Google will have 2 of the top 5 largest banks in the nation, Citi and the combined PNC/BBVA under this Google Plex umbrella. I'm sure these won't be the only Big Banks to partner with Google over the coming months. But already having 2 of the Top 5 largest Banks in the country will certainly incentivize others to join Google and quickly at that. It also incentivizes Apple to get off their ass and further partner with banks other than Goldman Sachs and beef up Apple Pay which suddenly looks now as a pretty weak and stale digital wallet.

Freedom1$
Freedom1$

These Super Apps have been out for awhile, here is one that has already been out for over a year plus. Enjoy!!!


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