Google announced today that it is moving into consumer finance.
The tech powerhouse will let users open a bank account through its Google Pay app, in a partnership with Citi and Stanford Federal Credit Union beginning next year.
The tech giant is relaunching the payments app to allow people to pay friends, similar to PayPal’s popular Venmo and Square’s Cash App.
“It’s going to have a broad appeal, but especially among the younger population, Gen Z, that are more tech-driven and mobile-focused,” says Anand Selva, CEO of U.S. consumer banking at Citi.
Google’s announcement follows rival Apple who launched its iPhone-integrated credit card with Goldman Sachs last year. Facebook lets users make payments via Messenger in certain markets. Chinese conglomerates Alibaba and Tencent have become giants in payments and investing thanks to their mobile payments apps.
Google has said its checking and saving accounts will have no monthly fees, overdraft charges or minimum balance requirements. However, perhaps the most intriguing feature is how users can link Google photos to search receipts and link Gmail to see bills and subscriptions for money management. It shows spending summaries, and trends over time. Users also get rewards and offers based on their transaction information.
So, now Google will not only know your location, browsing history, and whatever other data we give them, but now they also want our finances?
I think it’ll be a hard pass for us.
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