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Alphabet (GOOGL) stock price has risen recently. Will the company be able to compete successfully with its new smart debit card on the fintech market?
Alphabet Inc (NASDAQ: GOOGL), (NASDAQ: GOOG) stock prices have been rising steadily these days. GOOGL stock price rose to a high of $1, 279 last week. This represents a 6% rise. However, as at the time of writing, Alphabet (GOOGL) stock price was at $1,260.77 (-1.43%).
Alphabet’s Google is set to join the fintech game. We have previously reported that the search engine giant is developing a smart debit card to beat others. This card is being developed reportedly to compete with other technology giants such as Apple.
Alphabet (GOOGL) Stock Some Hurdles
Working with financial partners, Google could easily overcome any hurdles that may come its way. There are however a few that may prove tough.
The Keep-Big-Tech-Out-of-Finance Act is one. The bill has been introduced to separate finance from technology. If the bill passes through, the kinds of innovations that companies such as Google are bringing to the table could fizzle out.
One way around this will be to use special-purpose vehicles for such innovations. The problem with this will be the red tape and bureaucratic tendencies that will emerge from such arrangements.
For now, though, the COVID-19 situation is putting such legislation on the backburner.
Another will be the antitrust movement. The movement has made big gains in recent years as multiple fines and rulings have been slammed against technology giants. Google with its massive data trove will be a force to reckon with in any sector it chooses to compete in.
Google entering into fintech is a walk in the park. The search engine giant hs everything it takes to create its own new set of data standards. It has done this before (the android operating system). Should it end up there, many within the United States regulatory framework will cry blue murder.
Another problem the search engine giant will have to face will be the users. Many people have become wary of the privacy issues that surround the usage of Google services. If this trend snowballs, we might be seeing a new mountain that Google will have to climb.
Apple users, on the other hand, are having a field day for now. The Cupertino California giant is reviving its sales in China. The Chinese love Apple phones and devices.
Apple’s Service Business Has Issues as Well
Its service business unit is still showing signs of weakness though. This is something that Google will try to exploit. Being a technology and services company, Google will make as many offerings that it can make to be available to its users and fans.
This will create the “Google-effect” and as such competition will then ensue especially in the fintech space.
A convergence of technology businesses seems to be on the rise. This trend could be where we are going to next: the realm of personalization.
We can expect Google and Apple to be there. It is just a question of who will be leading who.