Google Ready to Attack Apple Pay

With the goal of undercutting the most recent hit service of Apple, Google will team up with three of the major wireless carriers in the U.S. to entice more people into using the mobile wallet it developed.

On Monday, the announcement is just the most recent example of how competition between Apple and Google is moving beyond the traditional boundaries of the tech industry.

Besides payments, the two richest Silicon Valley companies are expanding into the fields such as cars and home appliances to help increase power as well as profits.

The latest volley by Google calls for wallet, its payment service, to be built into smartphones with Android sold by Verizon, T-Mobile and AT&T later in 2015. Owners of smartphones currently must download this service, known as Google Wallet and then install it on their phone if they want to purchase something with their phone instead of taking out a credit card or cash.

Apple’s rival pay service Apple Pay, already is embedded in the most recent versions of the mobile software of the Cupertino. California based company.

Besides attempting to make it more of a convenience using Wallet, Google is also hoping to improve its service that is close to 4 years old,

Google Inc is purchasing some payment technology for mobile handsets and patents from a 5-year old company Softcard owned by wireless carriers. No financial terms were disclosed.

Although Google as well as the wireless carriers were able to get a jumpstart with digital wallets, the concept had not gained much traction until last fall when Apple Pay debuted.

The service is more popular now than what Apple had expected, according to presentation recently by Tim Cook the CEO.

Only three months following the November debut of Apple Pay, Cook said its service accounted for two thirds of every dollar spent amongst the three biggest card networks in the U.S., when no credit card is used.

About 2,000 credit unions and banks agreed to offer the new Apple Pay to customers, but Apple did not say the number of merchants are set up to handle its payment service.

Latest News

Leave a Reply

share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit