Google Hires PayPal Vet to Reset Strategy After Its Banking Retreat (bloomberg.com) 23
Alphabet's Google has hired former PayPal executive Arnold Goldberg to run its payments division and set a new course for the business after it scrapped a push into banking. Bloomberg reports: The move is part of a broader strategy to team up with a wider range of financial services, including cryptocurrencies, said Bill Ready, Google's president of commerce. The business, known for the Google Pay system and mobile wallet, has largely avoided the crypto industry. The changes follow a major turnabout in October. Google had spent years planning a digital checking and savings service, lining up 11 banking partners for the launch. But that month the company nixed the proposed offering, called Plex. Instead, Google wants to become the connective tissue for the entire consumer finance industry, not just certain partners, according to Ready. "We're not a bank -- we have no intention of being a bank," Ready said in an interview. "Some past efforts, at times, would unwittingly wade into those spaces."
Tom Noyes, an industry analyst, estimated in 2020 that Google accounted for 4% of contactless payments in the U.S., calling the service "largely a failure." As part of the overhaul, Google will focus more on being a "comprehensive digital wallet" that includes digital tickets, airline passes and vaccine passports, Ready said. He didn't provide an update on the current number of Google Pay users. The company is integrating payments more tightly with Google's shopping efforts, such as a feature that shows consumer loyalty cards and personal discounts directly in search results. Google also is trying to position itself as more welcoming to merchants than Amazon. In 2020, Google eliminated fees for retailers selling on its shopping service.
Tiptoeing into crypto also could help Google entice users. Google has partnered with companies, including Coinbase and BitPay, to store crypto assets in digital cards, while still having users pay in traditional currencies. Ready said Google is looking to do more of these partnership, though the company still isn't accepting crypto for transactions. "Crypto is something we pay a lot of attention to," he said. "As user demand and merchant demand evolves, we'll evolve with it."
Tom Noyes, an industry analyst, estimated in 2020 that Google accounted for 4% of contactless payments in the U.S., calling the service "largely a failure." As part of the overhaul, Google will focus more on being a "comprehensive digital wallet" that includes digital tickets, airline passes and vaccine passports, Ready said. He didn't provide an update on the current number of Google Pay users. The company is integrating payments more tightly with Google's shopping efforts, such as a feature that shows consumer loyalty cards and personal discounts directly in search results. Google also is trying to position itself as more welcoming to merchants than Amazon. In 2020, Google eliminated fees for retailers selling on its shopping service.
Tiptoeing into crypto also could help Google entice users. Google has partnered with companies, including Coinbase and BitPay, to store crypto assets in digital cards, while still having users pay in traditional currencies. Ready said Google is looking to do more of these partnership, though the company still isn't accepting crypto for transactions. "Crypto is something we pay a lot of attention to," he said. "As user demand and merchant demand evolves, we'll evolve with it."
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What failure. (Score:3)
If I owned a service that accounted for 4% of contactless payments in the US, I would not call it "largely a failure".
Tesla accounts for 4% of new car sales in the US, is Tesla "largely a failure"? (source: https://www.marklines.com/en/s... [marklines.com] )
Their only metric to success seems to be how much of a monopoly they are.
Like hiring from Lehman Bros for Compliance (Score:2)
Paypal is a disaster for payments, I abandoned them some years ago.
As for success rates, anything less than 70% would be considered a failure by Google!
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The problem Google has , is that its got no patience.
Its transfixed by its own overnight successes , but fails to understand that most businesses have a period of struggling in the market before they finally find their profitable niche. But Google abandons plans so rapidly its never giving its startups a chance to survive that struggle and actually gain market traction.
Why anyone would go to Alphabet to work on new ideas is beyond me.
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Indeed, Google has quite many good ideas in products they make, but they are often only halfway to a good product overall and instead of working to improve them over time, they just kill the product.
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For comparison Apple Pay is at about 6%.
I know a lot of people who seem to think that having payment on your phone is a bad idea, like it will get hacked or something. The banks clearly disagree, the limits on phone payments are much higher than for contactless card payments. They never fail security checks either, unlike contactless where you occasionally need to enter your PIN.
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For comparison Apple Pay is at about 6%.
I know a lot of people who seem to think that having payment on your phone is a bad idea, like it will get hacked or something. The banks clearly disagree, the limits on phone payments are much higher than for contactless card payments. They never fail security checks either, unlike contactless where you occasionally need to enter your PIN.
Sure about Apple Pay having 6% relative to that? Numbers in Ars Technica [arstechnica.com] has Apple at 92%, Samsung at 5% and Google at 3%.
How is the "NFC directly from the card" doing in the US? Here in Norway, I'd put that as the front runner - by far. Apple dominates the "paying from mobile/watch" market, but most just tap their cards.
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If I owned a service that accounted for 4% of contactless payments in the US, I would not call it "largely a failure".
Tesla accounts for 4% of new car sales in the US, is Tesla "largely a failure"? (source: https://www.marklines.com/en/s... [marklines.com] )
Their only metric to success seems to be how much of a monopoly they are.
To put it into perspective: According to numbers quoted in Ars Technica [arstechnica.com], Google Pay has 3%. This compares to 5% for Samsung Pay - and 92% for Apple Pay.
Crypto? (Score:2)
Tiptoeing into crypto also could help Google entice users. Google has partnered with companies, including Coinbase and BitPay, to store crypto assets in digital cards, while still having users pay in traditional currencies.
Or it will have people such as myself decide to never ever get involved with their scam now that Google accepts electronic monopoly money. Not sayin' just sayin'.
No thanks (Score:2)
Google Pay dug its own grave when they rebooted a year or three ago with the whole "we're going to track all of your payments in one place" thing.
No thanks. I don't need that kind of "convenience" and I certainly don't need them tracking even more about me.
So how many years until Google abandons _this_... (Score:2)
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At least they shut down their bank before it opened, moving accounts is a big hassle for users.
I like this new system; shut it down even before it launches!
of course Google Hires PayPal Vet (Score:2)
Because everyone loves PayPal, right?
I've been using Google pay every month for years without a hitch. They don't need any changes. This appears to be part of the American Way: Every quarter must show greater income, greater profits ad infinitum. Investors demand it, Executive bonuses depend upon it. So it's time to take some chances, even if it means teasing a venture into crypto, guided by an assumed financial expert.
Was a bit confused... (Score:3)
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If your vet only accepts paypal, you might want to consider doing a background check to see if their bad credit is due to malpractice lawsuits!
"comprehensive digital wallet" (Score:2)