Google is reportedly working on a Google Card. The card will be a debit card, and not a credit card like Apple Pay.
Just last week, Huawei released its own version of the Apple Card. The Chinese company calls it the Huawei Card. Essentially, the Huawei Card is identical to Apple’s card. The only difference is that the Huawei Card is only available in China right now.
Apple is working on entering the financial payment services in China, but Huawei is beating them to the punch. Now, Apple has another storm brewing its way with Google working on its own Google Card.
Google card is a debit card
Unlike Apple’s card, Google will have a debit card that is link to a user’s bank account. Google is reportedly working with Citibank and Stanford Federal Credit Union as its affiliate banks. The Google card will use the chip within the VISA card system, but Google has said that they are also working with Mastercard for their services.
Similar to Apple’s, the Google card will also have a virtual version for online payments and other similar online transactions. The system of the Google card shall most likely be hooked up with the Google Pay app, which presently manages the financial services of the company.
In an email to a query about the legitimacy of the rumors, the company responded by saying:
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.
Opportunities for Google with the Google Card
Google, as soon as it releases its own card could generate bigger revenues from its existing businesses like their advertising. Moreover, Google will be able to track all of its users’ spending across all merchants whether online or in physical stores.
With this new framework, advertisers will be more than interested to get a hold of that information. As such, Google will be able to provide a more refined advertising targeting system, which will be beneficial for advertisers.
Furthermore, Google can also utilize the financial data from different income levels. Eventually, the company may develop a full fledged financial services business. It may even offer stock brokerage, mutual funds management, and other similar services.
It appears that the company holds massive amounts of data that comes from their search engine business. These data can definitely shape the future financial systems, particularly in guiding their users’ decision.
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