Google plans to launch checking accounts, but it doesn't want to be a bank
Codename: "Cache"... It's money. And it's tech. That's what Google stealthily calls its checking account project, which will launch next year with Citibank's help. Alphabet's financey move follows Apple (its new credit card is powered by Goldman Sachs) and Facebook (it just unveiled Facebook Pay while also working on a global cryptocurrency). But here's Google's plan:
- Contact-less: You'd pay via Google Pay. If you're nostalgic for a physical card, you'll stick with your old school bank.
- Fees?: Unclear. Google didn't mention if it'll charge the fees you hate paying.
Follow the money... Even if Google doesn't charge fees, it could make money off this. It's said it won't sell your spending data, but didn't say it won't eyeball your spending habits... then target you with better ads (which Google can charge more for). Half of Americans use debit cards daily, so picture this:
- If you splurged for the fancy premium Ikon ski pass, Google could target you with ads for an Arc'teryx parka ($$$$).
- If you stuck with the lower-priced budget Ikon ski pass, Google could target you with ads for that Columbia jacket ($$).
Silicon Valley wants to be your bank, but doesn't want to become a bank... Banks are regulated. Hardcore. Alphabet and Apple aren't interested, so they're letting actual banks handle the backend while they look good up front. It's like those Bathtub Fitter commercials. Big Tech doesn't get the business benefits of being a bank, but it's more embedded in your daily life through your payments.