Google’s move into consumer finance

In its latest move, the Internet giant said it would be collaborating with commercial banks and credit unions in 2021 to allow users to manage mobile-based accounts through the Google Pay platform.

According to Caesar Sengupta, Vice President of Google Payments, people do almost everything on their phones today, but for many, the way they save, pay and engage with their bank has remained unchanged.

Google will be working with trusted financial institutions to create Plex, a new mobile-first bank account integrated into Google Pay. The Plex Accounts for US consumers will be offered with no monthly fees, overdraft charges or minimum balance requirements.

At the same time the Internet giant said it is updating its Google Pay app to help users better organise payments to people and businesses. Instead of showing a stack of cards or a long list of transactions, the new Google Pay app focuses on the friends and businesses you transact with most frequently.

The initiative comes with tech giants moving deeper into personal finance with person-to-person payments and co-branded credit cards.

Apple recently launched its own branded credit card with Goldman Sachs which integrates into its Apple Pay application. While Amazon, which has its own branded credit card, has discussed offering its own checking accounts but has not followed through with the plan.