Komal Joshi · Oct 21, 2020 . 6min read
Google to launch bank accounts on Google Pay platform with Six New Partners
Google has announced that it will be working with a number of banks to launch digital bank accounts on its Google Pay platform.
By Shilika · Aug 4, 2020 . 4min read
Google has announced that its payments platform Google Pay will start offering users the ability to open bank accounts from 2021 onwards.
The tech giant launched its payments platform back in 2015 as Android Pay. It then changed its name to Google Pay in 2018. Users can link their existing bank accounts to the platform and make payments using their smartphones. They can also check their account balances and directly settle bills.
Google partners with Six US Banks
Now, Google has announced that it will be partnering with several Federal Deposit Insurance Corporation (FDIC) backed banks. Customers will be able to directly open and manage bank accounts through the Google Pay platform. The U.S. banks that they have partnered with include the Citi Group, Stanford Federal Credit Union, Bank Mobile, First Independence Bank, and so on. It will be adding to this list in the coming months.
“We had confirmed earlier that we are exploring how we can partner with banks and credit unions in the U.S. 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. We are excited that six new banks have signed up to offer digital checking and savings.”
Usually, banks release their own smartphone applications that allow users to make use of a number of features. These include the ability to budget, invest, etc. With Google Pay involved, the partner banks can simply allow Google to take care of the tech side of things. The tech giant will provide the interface layer, but it will still be housed and operated by the partner institutions.
With traditional financial institutions paving the way for digital financial solutions (including Cryptocurrencies and Defi), this partnership with Google will be instrumental in creating a digital financial ecosystem.