As was reported by The Verge, Google Pay is gaining support for mobile checking accounts beginning sometime in 2021. This new feature for the mobile payment option will become a reality due in part to new partnerships launched by Google with banking entities like BBVA and the U.S. division of the Bank of Montreal (BMO). According to the report, these new mobile checking accounts will exist entirely within Google Pay, so that’s where customers will be able to check up on account details, including important numbers, documentation, and balances.
Google will handle the checking accounts on the digital side of things, directly within the app. The partner banks, of which there are eight in total, will handle the infrastructure of the checking accounts, as well as things like backend technology and FDIC insurance. What’s unknown at this time is whether or not customers that open a new mobile checking account with Google Pay are going to have a physical debit cards provided by Google or the partner bank.
It’s worth noting that when the first reports cropped up regarding Google and checking accounts, the company didn’t deny those moves. In fact, Google actually confirmed it was exploring options with banks like Citi and Stanford Federal Credit Union. And now it looks like Google is ready to move forward with the idea and new option for customers after adding six additional banks to the mix:
We had confirmed earlier that we are exploring how we can partner with banks and credit unions in the US to offer digital bank 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,” a Google spokesperson tells The Verge. “We are excited that six new banks have signed up to offer digital checking and savings. In addition to Citi and Stanford Federal Credit Union, we will also be working with Bank Mobile, BBVA USA, BMO Harris, Coastal Community Bank, First Independence Bank and SEFCU.
So, Google is going to start offering checking accounts and savings accounts, with an entirely mobile experience. These new services will launch sometime in 2021, and more details will surely arrive before that happens.
Should Apple follow suit?
Apple has its own credit card, the Apple Card, which it launched in partnership with Goldman Sachs not too long ago. (It just welcomed Panera Bread as a partner to its 3% Daily Cash feature.) Checking accounts and savings accounts offer different income potential for companies compared to a credit card, so do you think Apple will follow along in Google’s footsteps here and launch its own checking and/or savings accounts at some point in the future?
If Apple were to do that, would you sign up?
When these services launch, do you think you’ll be signing up for a mobile checking and/or savings account with Google? Let us know in the comments.