Google’s E-Payment Business

Google has been experimenting with the rollout of a new payment service, letting Gmail users send money for free over email.

Reports say Gmail users in the U.K. may have seen an advertisement for Google’s new service that sees the company float funds. Google says users will have total control over where the money lands – customers will sign up with their debit card and designate how much they want to send to another person; the funds land in the recipient’s bank account, while you get charged by Google the amount you just sent attached to your email.

It’s the latest offering by Google Payment Corporation, and while industry experts point out the obvious benefits of Google e-payment services, they warn consumers should be ready for some downsides, too.

Google’s position in the world as a technology behemoth means the company already has the trust necessary for consumers to let Google run an e-money float, the Financial Times writes. Plus, the service can coexist with the current banking system instead of working to displace it.

But, reports say, because Google offers the money transfer service for free, it will probably be loaded with ads and the corporation may be more interested in taking your personal information than your money, though that theory isn’t confirmed.

Google’s venture into the e-payments industry has seen its share of ups and downs.

In its Q4 earnings call last month, Google highlighted a refocused effort on erasing the friction of digital payments technology, beyond tap-and-pay.

The company’s most high-profile payment service, Google Wallet, has shown mediocre performance since its release in 2011. But as Google Wallet competes with Apple Pay and other mobile payment NFC solutions, the technologies may have to compete together to successfully penetrate the market.