Google is developing the financial service Cache, which will allow users to open and use accounts through the Google Pay application. Citi Bank will become its partner.
In September, Altcoin Buzz enquired whether Google threatens cryptocurrencies. Particularly, by developing a special computing system. While the latter is more of a speculation, it has emerged that the search engine company is about to introduce a novel payment service.
Thus, already in 2020, it will offer its users the opportunity to register payment accounts. They will be accessible through the Google Pay e-wallet. And it will be a partner project between Google, Citi Bank and California credit union.
So, it means that Google will actually operate as a bank. It will manage accounts, checkbooks, and other attributes. Moreover, it will need no license for this activity, since the partner banks will become the formal operator and executor of all financial transactions.
“Our approach is going to be to partner deeply with banks and the financial system,” Google executive Caesar Sengupta told. “It may be the slightly longer path, but it’s more sustainable. If we can help more people do more stuff in a digital way online, it’s good for the internet and good for us.”
And it’s worth mentioning that Google Pay service reached 11.1 million users in the US in 2018.
“We are pleased to explore providing checking accounts nationwide through Google Pay,” Citi spokesman Drew Benson. “This agreement has the potential to expand the reach and breadth of our customer base while complementing our continued investments in digital, particularly our market-leading Citi Mobile app.
Forbes crypto Twitter account noted that this partnership can become a serious threat to Bitcoin.
After Google's announcement that it plans to launch its own checking accounts, perhaps the search giant will kill bitcoin, after all: https://t.co/uZpPlgaebR by @BillyBambrough pic.twitter.com/hoAPfwRnEd
— Forbes Crypto (@ForbesCrypto) November 18, 2019
Though, Twitter users made fun of this assumption. They believe that the new service will be lacking one important feature Bitcoin has. And that is privacy and transparency. They are trolling the author of the article in various ways.
Search engine and payments?
The Cache project is not the first effort of the search giant to enter the financial services world. Back in 2011, the company launched the Google Wallet service, where users can store their credit and debit cards in digital format for shopping. And in 2015, the company offered using email to settle bills.
The Google Pay digital wallet was launched in 2015. Now, it is going to be a tool to access user checking accounts in 2020.