By
Bhushan Akolkar
April 12th, 2024
Google accelerates its work in the FinTech space as newly leaked images show that Google is working on a debit card of its own. Google has reportedly joined hands with CITI bank to handle all the financial infrastructure for its services.
While the global financial and banking sector is struggling to meet ends amidst the fragile global economy, tech giants are accelerating their plans to penetrate the FinTech space. TechCrunch recently reported that Google is possibly working on its own virtual and physical debit card. This is very much similar to the Apple Card announced last year. Citing a leaked image, TechCrunch also reported that Google’s new payment system will allow users to make purchases through card, online, or mobile handsets.
Besides, the Google Card will have an integration with the Google Pay app. This will also allow the users to easily keep track of their expenses, balances, as well as account access. Just like apple partnered with Goldman Sachs, Google has reportedly joined hands with CITI and Stanford Federal Credit Union.
Google Pay is the company’s instant payment service allowing peer-to-peer payments. However, Google Pay currently functions by being tethered to a traditional debit card. Having its own physical/virtual debit card will allow Google to expand its footprint in the FinTech space.
Google Exploring New Stream of Revenue, Smart Card as the First Step
Over the last few years, Google has dominated the online advertising space with its robust search engine and powerful userbase. The company now plans to leverage its massive online presence by venturing in the FinTech space. Having a smart debit card will help Google to unlock new opportunities and revenue streams.
Google can further use the transaction data to better understand consumer psychology which, in turn, will help other businesses to find the right audiences online. It can also unlock new opportunities in the future like Google venturing in the financial services space. This way, Google can offer services like insurance, financial advice, stock brokerage, etc.
Besides, with its Android ecosystem, which dominates 80% of the mobile market, Google can have a deeper understanding of consumer needs. As a result, Google can efficiently mitigate any financial risks compared to other traditional financial institutions.
Google has absolutely denied its progress in this space. Responding to TechCrunch’s query, 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. Our lead partners today are Citi and Stanford Federal Credit Union, and we look forward to sharing more details in the coming months”.
For now, Google has no immediate plans to offer banking infrastructure. Google said that it will work with partnered banks and credit unions to provide the financial infrastructure for its services.
The leaked images show that Google’s debit card will be co-branded with Google and its partner bank’s name. Besides, it will be a chip card powered by the Visa network. Reportedly, using the Google Pay application, users would easily transfer funds from their banks to the Google Card. While physical cards will work at different retail locations, the virtual card will facilitate online purchases.