Google kills plans to offer bank accounts through Google Pay

AppleInsiderAppleInsider
Posted:
in General Discussion edited October 2021
Google has decided not to move forward with plans to offer mobile-first bank accounts to Google Pay users, an initiative that would have helped solidify the tech giant's position as a serious finance market player.

Google


Dubbed Plex, n&eacutee Cache, the system was designed to present Google Pay digital wallet users access to augmented checking and savings accounts from a number of major financial institutions including Citigroup. Accounts were expected to arrive without monthly fees, overdraft charges or minimum balance requirements.

First unveiled in 2019 as a response to technologies like Apple Card and set to arrive in 2020, Google has unceremoniously killed the project, reports The Wall Street Journal.

Like Apple Card, Google's solution was meant to boost financial wellness by helping users stay ahead of bills and keep track of expenses via a digital dashboard. With access to user bank accounts, Plex would also assist in building wealth by setting savings goals.

The product was expected to arrive last year, but a planned rollout hit snags. After a number of missed deadlines and the departure of project lead Caesar Sengupta in April, Google decided to scrap the initiative, the report said, citing sources familiar with the matter.

In its place, Google plans on "delivering digital enablement for banks and other financial services providers rather than us serving as the provider of these services," a spokesperson told the publication.

Potential customers who were placed on a waiting list to be among the first to try out Plex will be offered other account options, Citigroup said. A source told The Wall Street Journal that about 400,000 people had signed up for early access to the service.

While adoption of Apple's Apple Pay, Apple Cash and Apple Card financial tools grows, Google's efforts in the sector have not enjoyed the same success beyond Android's default Google Pay system. Google intends to move forward with related initiatives, though it remains unclear if the company will circle back to bank account integration at some point in the future.

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Comments

  • Reply 1 of 12
    22july201322july2013 Posts: 3,571member
    Google Plex! https://en.wikipedia.org/wiki/Googolplex <--
    MacsWithPenguins
  • Reply 2 of 12
    GeorgeBMacGeorgeBMac Posts: 11,421member
    The concept of bank centric checking and savings accounts is not only looking increasingly dated -- but is actively being challenged by various crypto currencies.

    Much of the world has been locked out of the banking infrastructure either out of poverty or where they live.
    One result is:  El Salvador is backing away from using the U.S. dollar as their base currency and adding BitCoin -- not because they don't like or trust the dollar but the (mostly American) banking industry that controls it has been abusing their people with restrictions and excessive fees.  With BitCoin, anybody can save "cash" in their wallet and transfer it across borders instantaneously directly to another person or business without restrictions, delay or fees. 

    On the other hand, AppleCash could become a viable alternative:  You can save money in your wallet and transfer it instantaneously to other people and businesses without any fees or restrictions (other than that they have access to AppleCash).  But, it is still tied to a bank as every penny in that system (which is housed in a bank) originally came from an electronic bank transfer.  And, there are other similar systems out there.

    While there are serious concerns about BitCoin, could ApplePay (or its like) be the future?
    My grandson and his friends are increasingly using instead of cash.   They are too young to have or support bank accounts with a steady stream of income but they can use AppleCash -- and they don't even need to carry a physical wallet -- their phones are never far from their hands.

    And, at the same time, people used to use banks to safely store their cash while reaping income from the interest the bank paid.  But now that is pretty much gone:  You can safely store money in a BitCoin or AppleCash wallet -- and interest payments won't buy a cup of coffee:  $10,000 gets you a couple pennies.  So why use a bank?   Soon, people will be figuring that out and the banksters will be horrified.
    edited October 2021 p-dogJWSC
  • Reply 3 of 12
    BeatsBeats Posts: 3,073member
    GeorgeBMac said:
    The concept of bank centric checking and savings accounts is not only looking increasingly dated -- but is actively being challenged by various crypto currencies.

    Much of the world has been locked out of the banking infrastructure either out of poverty or where they live.
    One result is:  El Salvador is backing away from using the U.S. dollar as their base currency and adding BitCoin -- not because they don't like or trust the dollar but the (mostly American) banking industry that controls it has been abusing their people with restrictions and excessive fees.  With BitCoin, anybody can save "cash" in their wallet and transfer it across borders instantaneously directly to another person or business without restrictions, delay or fees. 

    On the other hand, AppleCash could become a viable alternative:  You can save money in your wallet and transfer it instantaneously to other people and businesses without any fees or restrictions (other than that they have access to AppleCash).  But, it is still tied to a bank as every penny in that system (which is housed in a bank) originally came from an electronic bank transfer.  And, there are other similar systems out there.

    While there are serious concerns about BitCoin, could ApplePay (or its like) be the future?
    My grandson and his friends are increasingly using instead of cash.   They are too young to have or support bank accounts with a steady stream of income but they can use AppleCash -- and they don't even need to carry a physical wallet -- their phones are never far from their hands.

    And, at the same time, people used to use banks to safely store their cash while reaping income from the interest the bank paid.  But now that is pretty much gone:  You can safely store money in a BitCoin or AppleCash wallet -- and interest payments won't buy a cup of coffee:  $10,000 gets you a couple pennies.  So why use a bank?   Soon, people will be figuring that out and the banksters will be horrified.

    I think it’s funny that everyone bashes Bitcoin on AI but since this is an anti-Google article maybe now Bitcoin is good?

    I invest in Bitcoin but what I don’t like is that it’s too volatile. With U.S. currency your $100 is worth maybe 99.998 or 100.001 tomorrow but with Bitcoin your $100 might be worth $96 tomorrow then $101 later that night. 
  • Reply 4 of 12
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Beats said:
    GeorgeBMac said:
    The concept of bank centric checking and savings accounts is not only looking increasingly dated -- but is actively being challenged by various crypto currencies.

    Much of the world has been locked out of the banking infrastructure either out of poverty or where they live.
    One result is:  El Salvador is backing away from using the U.S. dollar as their base currency and adding BitCoin -- not because they don't like or trust the dollar but the (mostly American) banking industry that controls it has been abusing their people with restrictions and excessive fees.  With BitCoin, anybody can save "cash" in their wallet and transfer it across borders instantaneously directly to another person or business without restrictions, delay or fees. 

    On the other hand, AppleCash could become a viable alternative:  You can save money in your wallet and transfer it instantaneously to other people and businesses without any fees or restrictions (other than that they have access to AppleCash).  But, it is still tied to a bank as every penny in that system (which is housed in a bank) originally came from an electronic bank transfer.  And, there are other similar systems out there.

    While there are serious concerns about BitCoin, could ApplePay (or its like) be the future?
    My grandson and his friends are increasingly using instead of cash.   They are too young to have or support bank accounts with a steady stream of income but they can use AppleCash -- and they don't even need to carry a physical wallet -- their phones are never far from their hands.

    And, at the same time, people used to use banks to safely store their cash while reaping income from the interest the bank paid.  But now that is pretty much gone:  You can safely store money in a BitCoin or AppleCash wallet -- and interest payments won't buy a cup of coffee:  $10,000 gets you a couple pennies.  So why use a bank?   Soon, people will be figuring that out and the banksters will be horrified.

    I think it’s funny that everyone bashes Bitcoin on AI but since this is an anti-Google article maybe now Bitcoin is good?

    I invest in Bitcoin but what I don’t like is that it’s too volatile. With U.S. currency your $100 is worth maybe 99.998 or 100.001 tomorrow but with Bitcoin your $100 might be worth $96 tomorrow then $101 later that night. 

    There is and has been an ongoing debate whether BitCoin is a currency or an investment.

    Meanwhile, both China & the U.S. are researching Central Bank issued digital currencies -- which would stabilize it.

    Personally, I don't see free floating cryptocurrencies having a long term future.  The big boys like the China, U.S. and the EU will not feel comfortable with the fate of their economies floating around like that.   Plus, the banks and investments houses will want to be involved -- if not in charge.

    I suspect that Apple Pay / AppleCash and  its cousins will come out the winner - as a blend of old and new finance.
  • Reply 5 of 12
    JWSCJWSC Posts: 1,203member
    Beats said:
    GeorgeBMac said:
    The concept of bank centric checking and savings accounts is not only looking increasingly dated -- but is actively being challenged by various crypto currencies.

    Much of the world has been locked out of the banking infrastructure either out of poverty or where they live.
    One result is:  El Salvador is backing away from using the U.S. dollar as their base currency and adding BitCoin -- not because they don't like or trust the dollar but the (mostly American) banking industry that controls it has been abusing their people with restrictions and excessive fees.  With BitCoin, anybody can save "cash" in their wallet and transfer it across borders instantaneously directly to another person or business without restrictions, delay or fees. 

    On the other hand, AppleCash could become a viable alternative:  You can save money in your wallet and transfer it instantaneously to other people and businesses without any fees or restrictions (other than that they have access to AppleCash).  But, it is still tied to a bank as every penny in that system (which is housed in a bank) originally came from an electronic bank transfer.  And, there are other similar systems out there.

    While there are serious concerns about BitCoin, could ApplePay (or its like) be the future?
    My grandson and his friends are increasingly using instead of cash.   They are too young to have or support bank accounts with a steady stream of income but they can use AppleCash -- and they don't even need to carry a physical wallet -- their phones are never far from their hands.

    And, at the same time, people used to use banks to safely store their cash while reaping income from the interest the bank paid.  But now that is pretty much gone:  You can safely store money in a BitCoin or AppleCash wallet -- and interest payments won't buy a cup of coffee:  $10,000 gets you a couple pennies.  So why use a bank?   Soon, people will be figuring that out and the banksters will be horrified.

    I think it’s funny that everyone bashes Bitcoin on AI but since this is an anti-Google article maybe now Bitcoin is good?

    I invest in Bitcoin but what I don’t like is that it’s too volatile. With U.S. currency your $100 is worth maybe 99.998 or 100.001 tomorrow but with Bitcoin your $100 might be worth $96 tomorrow then $101 later that night. 
    You said it.  Bitcoin is an investment vehicle.  Few use it as a currency.  Since the number of bitcoins is mathematically limited by design, it will never be useful as a true currency.
    watto_cobra
  • Reply 6 of 12
    MplsPMplsP Posts: 3,925member
    One has to wonder if the real reason Google canned the project was to avoid being under regulatory scrutiny. 

     Credit cards like the Apple Card are routinely offered in partnership with a bank, but when you start offering banking services you fall under banking regulations. 
    watto_cobra
  • Reply 7 of 12
    GeorgeBMacGeorgeBMac Posts: 11,421member
    JWSC said:
    Beats said:
    GeorgeBMac said:
    The concept of bank centric checking and savings accounts is not only looking increasingly dated -- but is actively being challenged by various crypto currencies.

    Much of the world has been locked out of the banking infrastructure either out of poverty or where they live.
    One result is:  El Salvador is backing away from using the U.S. dollar as their base currency and adding BitCoin -- not because they don't like or trust the dollar but the (mostly American) banking industry that controls it has been abusing their people with restrictions and excessive fees.  With BitCoin, anybody can save "cash" in their wallet and transfer it across borders instantaneously directly to another person or business without restrictions, delay or fees. 

    On the other hand, AppleCash could become a viable alternative:  You can save money in your wallet and transfer it instantaneously to other people and businesses without any fees or restrictions (other than that they have access to AppleCash).  But, it is still tied to a bank as every penny in that system (which is housed in a bank) originally came from an electronic bank transfer.  And, there are other similar systems out there.

    While there are serious concerns about BitCoin, could ApplePay (or its like) be the future?
    My grandson and his friends are increasingly using instead of cash.   They are too young to have or support bank accounts with a steady stream of income but they can use AppleCash -- and they don't even need to carry a physical wallet -- their phones are never far from their hands.

    And, at the same time, people used to use banks to safely store their cash while reaping income from the interest the bank paid.  But now that is pretty much gone:  You can safely store money in a BitCoin or AppleCash wallet -- and interest payments won't buy a cup of coffee:  $10,000 gets you a couple pennies.  So why use a bank?   Soon, people will be figuring that out and the banksters will be horrified.

    I think it’s funny that everyone bashes Bitcoin on AI but since this is an anti-Google article maybe now Bitcoin is good?

    I invest in Bitcoin but what I don’t like is that it’s too volatile. With U.S. currency your $100 is worth maybe 99.998 or 100.001 tomorrow but with Bitcoin your $100 might be worth $96 tomorrow then $101 later that night. 
    You said it.  Bitcoin is an investment vehicle.  Few use it as a currency.  Since the number of bitcoins is mathematically limited by design, it will never be useful as a true currency.

    El Salvadore just made it an official currency of their country (along with the U.S. dollar).
  • Reply 8 of 12
    MplsPMplsP Posts: 3,925member
    GeorgeBMac said:
    JWSC said:
    Beats said:
    GeorgeBMac said:
    The concept of bank centric checking and savings accounts is not only looking increasingly dated -- but is actively being challenged by various crypto currencies.

    Much of the world has been locked out of the banking infrastructure either out of poverty or where they live.
    One result is:  El Salvador is backing away from using the U.S. dollar as their base currency and adding BitCoin -- not because they don't like or trust the dollar but the (mostly American) banking industry that controls it has been abusing their people with restrictions and excessive fees.  With BitCoin, anybody can save "cash" in their wallet and transfer it across borders instantaneously directly to another person or business without restrictions, delay or fees. 

    On the other hand, AppleCash could become a viable alternative:  You can save money in your wallet and transfer it instantaneously to other people and businesses without any fees or restrictions (other than that they have access to AppleCash).  But, it is still tied to a bank as every penny in that system (which is housed in a bank) originally came from an electronic bank transfer.  And, there are other similar systems out there.

    While there are serious concerns about BitCoin, could ApplePay (or its like) be the future?
    My grandson and his friends are increasingly using instead of cash.   They are too young to have or support bank accounts with a steady stream of income but they can use AppleCash -- and they don't even need to carry a physical wallet -- their phones are never far from their hands.

    And, at the same time, people used to use banks to safely store their cash while reaping income from the interest the bank paid.  But now that is pretty much gone:  You can safely store money in a BitCoin or AppleCash wallet -- and interest payments won't buy a cup of coffee:  $10,000 gets you a couple pennies.  So why use a bank?   Soon, people will be figuring that out and the banksters will be horrified.

    I think it’s funny that everyone bashes Bitcoin on AI but since this is an anti-Google article maybe now Bitcoin is good?

    I invest in Bitcoin but what I don’t like is that it’s too volatile. With U.S. currency your $100 is worth maybe 99.998 or 100.001 tomorrow but with Bitcoin your $100 might be worth $96 tomorrow then $101 later that night. 
    You said it.  Bitcoin is an investment vehicle.  Few use it as a currency.  Since the number of bitcoins is mathematically limited by design, it will never be useful as a true currency.

    El Salvadore just made it an official currency of their country (along with the U.S. dollar).
    I didn’t realize El Salvador was a terrorist state
  • Reply 9 of 12
    GeorgeBMacGeorgeBMac Posts: 11,421member
    MplsP said:
    GeorgeBMac said:
    JWSC said:
    Beats said:
    GeorgeBMac said:
    The concept of bank centric checking and savings accounts is not only looking increasingly dated -- but is actively being challenged by various crypto currencies.

    Much of the world has been locked out of the banking infrastructure either out of poverty or where they live.
    One result is:  El Salvador is backing away from using the U.S. dollar as their base currency and adding BitCoin -- not because they don't like or trust the dollar but the (mostly American) banking industry that controls it has been abusing their people with restrictions and excessive fees.  With BitCoin, anybody can save "cash" in their wallet and transfer it across borders instantaneously directly to another person or business without restrictions, delay or fees. 

    On the other hand, AppleCash could become a viable alternative:  You can save money in your wallet and transfer it instantaneously to other people and businesses without any fees or restrictions (other than that they have access to AppleCash).  But, it is still tied to a bank as every penny in that system (which is housed in a bank) originally came from an electronic bank transfer.  And, there are other similar systems out there.

    While there are serious concerns about BitCoin, could ApplePay (or its like) be the future?
    My grandson and his friends are increasingly using instead of cash.   They are too young to have or support bank accounts with a steady stream of income but they can use AppleCash -- and they don't even need to carry a physical wallet -- their phones are never far from their hands.

    And, at the same time, people used to use banks to safely store their cash while reaping income from the interest the bank paid.  But now that is pretty much gone:  You can safely store money in a BitCoin or AppleCash wallet -- and interest payments won't buy a cup of coffee:  $10,000 gets you a couple pennies.  So why use a bank?   Soon, people will be figuring that out and the banksters will be horrified.

    I think it’s funny that everyone bashes Bitcoin on AI but since this is an anti-Google article maybe now Bitcoin is good?

    I invest in Bitcoin but what I don’t like is that it’s too volatile. With U.S. currency your $100 is worth maybe 99.998 or 100.001 tomorrow but with Bitcoin your $100 might be worth $96 tomorrow then $101 later that night. 
    You said it.  Bitcoin is an investment vehicle.  Few use it as a currency.  Since the number of bitcoins is mathematically limited by design, it will never be useful as a true currency.

    El Salvadore just made it an official currency of their country (along with the U.S. dollar).
    I didn’t realize El Salvador was a terrorist state

    They felt that they were being terrorized by U.S. banks.   Bitcoin was their way of escaping from that system.
  • Reply 10 of 12
    GeorgeBMacGeorgeBMac Posts: 11,421member
    MplsP said:
    One has to wonder if the real reason Google canned the project was to avoid being under regulatory scrutiny. 

     Credit cards like the Apple Card are routinely offered in partnership with a bank, but when you start offering banking services you fall under banking regulations. 

    According to this article from CNBC, you nailed it (except it suggests Google was more afraid of the banksters than the government)!

    "At least one tech giant has decided it’s better to serve banks rather than taking them head on.
    ...
    The new head of the business, Bill Ready, decided that he’d rather develop a digital banking and payments ecosystem instead of competing with banks,
    ...
    Amazon was reportedly exploring bank accounts in 2018, the project has yet to materialize. Uber reined in its fintech ambitions last year. Facebook was forced to rebrand its crypto project amid a series of setbacks.
    [And, I would add:  Alibaba was forced to rein in its Ant Group when China decided it was getting too big & too powerful]
    ...
    “We’re updating our approach to focus primarily on delivering digital enablement for banks and other financial services providers rather than us serving as the provider of these services,” a Google spokeswoman said in a statement.
    Google ... could help banks provide more secure ways for consumers to make online purchases like via virtual cards or single-use tokens.
    ...
    said Peter Wannemacher, a Forrester Research analyst who advises banks on digital efforts. “They made the bet that there was a greater gain in selling to banks rather than selling to customers.”

    https://www.cnbc.com/2021/10/02/googles-pivot-away-from-bank-accounts-shows-why-finance-is-a-tough-industry-for-tech-giants.html





    muthuk_vanalingam
  • Reply 11 of 12
    bestkeptsecretbestkeptsecret Posts: 4,265member
    Like Apple, Google also says a thousand "Nos" for every "Yes".
    Unlike Apple however, all the "Nos" are very public.
    watto_cobra
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