The America-based search giant in a fresh report is considering a presence in the financial space, and as a result, may soon start offering payment solutions among other things
The disclosure of the new plan was made by the tech giant in a press publication where it expressed its intensions to commence the provision of financial solutions to its countless customers. Also in the release, the tech giant also includes plans to offer checking accounts sometimes in 2020 via a partnership deal with two other financial companies- Citigroup and a credit union at Stanford University to make it work.
Google is popular for its search engine, Android OS, AI Assistant among other IoT initiatives, however, the technology-driven company wouldn’t mind an extension in the financial space, which has recently grown out of proportion. While Google’s entrance means a bigger threat to the existing financial companies, it is only an attempt by the search goliath to follow the trendy path, considering that other tech giants including the likes of Amazon, Facebook, and Apple already has a presence in the space.
Just two days ago, Facebook launches an in-app payment feature- FACEBOOK Pay, and its hints to offer payment solutions across all of its platforms including Messenger, Instagram, and WhatsApp. Aside from the just-launched Facebook Pay which is currently available in the U.S. Facebook has also been working on a self-owned cryptocurrency-LIBRA, although having a tough time with law-makers and authorities.
As for Google’s participation in the financial space, there is still a lot to be understood about the upcoming program, however, according to ear-says “Google will not be the one to be checking the accounts. Brand names of financial institutions will have accounts created for them while banks will be responsible for financial plumbing and compliance.” a reliable source, Nairametrics told.
“Also, smart checking options would be provided by banks and credit unions willing to partner in the initiative via Google Pay.” the source added.
Speaking on the new development, a spokesperson for Google said, “We’re exploring how we can partner with banks and credit unions in the US to offer smart checking accounts through Google Pay, helping their customers benefit from useful insights and budgeting tools, while keeping their money in an FDIC or NCUA-insured account.”
Additionally, Dan Ives, Managing Director of equity research at Wedbush Securities is of the opinion that Google’s new plan is rather a strategic one, and that could mean the tech giant is repositioning itself for what is to come–in the financial space. He added that this is just the beginning of new things. In his words, Dan said; “The missing piece is banking. This is just the tip of the spear in terms of where [tech giants are] going,”