Google debit card exposed! Will the competition among US mobile payment giants escalate?

As early as September 2019, news of Google developing "Google Card" was reported, and spy photos were leaked recently.

According to foreign media TechCrunch, Google is working with Citibank (CITI) and Stanford Credit Federal Union to develop a debit card, which will be jointly named by Google and its partner banks, but the exact name is not yet determined.

Leifeng.com learned that this debit card is a chip card of the Visa network, but it may also support Mastercard and other networks. In the future, users can make payments, transfers, etc. through related applications (most likely Google Pay), supporting fingerprints and PIN codes.

Google will provide both virtual and physical cards for users to shop - physical cards support contactless payments in stores, and virtual cards support Bluetooth payments, which can be used for online and in-app payments. Each transaction details include payment amount, merchant name, transaction time, etc. Users can get directions or call the merchant by viewing the location on the map.

If the physical card is lost, the user can lock the card and request a replacement while still being able to pay online; if the user is concerned about the security of the virtual card, they can quickly reset it or lock it completely to prevent all types of payments and transfers.

Behind the Google Debit Card

The final design and launch time of this card are still a mystery, but Google's ambition for payment tools is evident.

Although this card, as a debit card, will not be a direct competitor to Apple Card, the two have many similarities.

According to a person familiar with the matter:

• Google hopes that this debit card can develop into the basis of the Google Pay application to compete with Apple Pay and Apple Card. Currently, Google Pay only allows the addition of traditional payment cards for online and P2P payments, and this card will greatly increase the use of Google Pay and Google's potential to become a financial technology giant.

By developing a smart debit card, Google arguably has the opportunity to unlock new revenue streams and data flows:

You can charge a fee for transactions made through credit cards or other checking accounts and share the revenue with partners;

Google can use users' transaction data to improve the criteria and even the targeting of its advertising campaigns. If this debit card can boost product sales, major brands will also invest more in Google advertising.

From a longer-term perspective, the impact of this move may be even greater - as Google gradually moves from technology to financial services, this debit card may pave the way for Google to provide banking, stock brokerage, financial consulting or robot consulting, accounting, insurance or loan services in the future.

In addition, Google's extensive access to data enables it to manage risk more accurately than traditional financial institutions. Google, which has established deep connections with consumers through applications, advertising, search, and Android, has laid a solid foundation for its promotion and integration of financial services. At a time when the market is turbulent due to the COVID-19 pandemic, high-profit financial products are naturally a boon for Google.

It is worth mentioning that Google did not object to the media's speculations and assertions.

Google Pay combines multiple payment methods

In fact, Google has been making frequent moves in the mobile payment space:

• In 2011, Google first demonstrated the Google Wallet electronic wallet at the Google I/O conference, and launched the Google Wallet app in September of that year. Users can transfer money using mobile phones and computers, and can also make online payments and NFC offline payments;
• In 2013, Google Wallet was integrated with Gmail and expanded from the US market to the UK; and the physical debit card Google Wallet Card was launched (discontinued in 2016);
• In 2015, Google launched Android Pay at the Google I/O conference, focusing on the NFC payment function; Google cut the NFC payment function of Google Wallet;
• In 2017, Google launched the payment tool Tez in India;
• In 2018, Pali Bhat, Google's vice president of product management for payments, officially announced that Google Wallet and Android Pay would be merged into Google Pay.

On the other hand, its arch-rival Apple launched the Apple Pay NFC payment service in 2014 and announced the Apple Card credit card on March 26, 2019. Apple's approach is not only a layout in the financial field, but also conducive to promoting the diversification of its revenue sources and making the connection between its application ecosystem closer.

So, in the future, in the field of mobile payments, which of the two technology giants, Google and Apple, will be better? Let us wait and see.

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