Google is designing its own physical and digital debit card. The Google card and a linked checking account will enable users to buy items with a card, smartphone or through the web browser
It links to a Google app with a new characteristic that allows users easy access in tracking their purchases, check their account balance or secure their account.
The card will be partnered with different financial institutions such as Stanford Federal Credit Union and Citibank. By creating a smart debit card, Google has the chance to release new streams of revenue and information.
Google could decisively, charge interchange fees on goods bought with the card or other checking account fees, and then share them with its financial institution partners.
Protecting user’s privacy: Google could use the data taken from using its debit card, on what people purchase to improve advertising metrics or even focus on brands that would be willing to buy more Google adverts if Google can prove they boost sales for businesses.
Google’s huge access to data could enable it to precisely manage risk than many financial institutions. Its alignment to consumers via mobile apps, search, and its operating system (Android)gives it edge to promote and integrate financial services.
With the COVID-19 pandemic taking its toll on businesses worldwide, high-margin finance concepts such as the Google debit card could assist Google to develop well-planned revenue convenience and build its stock price back up.
Google may never find opportunities as profitable as its core in search and advertising, but it has the edge to become a great contender in fintech.
Its huge stack of cash, deep engineering talents, solving complex utility challenges, gives it an advantage over old traditional banks and some unreliable startups.