Google has announced a new payments tool and mobile wallet functionality which allows consumers to use their Google credentials to pay for items in app and via the web.
Daniel Döderlein is the CEO and founder of Auka. Auka was behind the first mobile payments solution in Scandinavia* and it was also the first fully licenced financial services solution to operate 100% from Google’s cloud platform.
“This is Google getting its millions of users, who are already familiar with the Google login method, and making it easy for them to do payments. Right now, through necessity, this is linked to a credit card. But once Google’s able to go to direct to account – which regulations in the second payment services directive (PSD2) within Europe will allow them to do – they will cut out the cards companies and to some extent, the bank. The bank will remain as a holding account of course, but won’t benefit from having ownership of the process.
In Scandinavia, banks created robust mobile payment systems which allow every payment scenario for every person – business owner or individual. This means that tech company mobile wallets (like Apple Pay) haven’t yet been able to gain a foothold. For the moment, banks in the rest of the world have a huge advantage in terms of their ready access to the customer, experience and ability to quickly put in place a future-proof system prior to having to hand over hard-won customer account access.
I have been saying again and again that companies like Facebook and Google will be banks biggest competitors in the future and now it’s happening. Here is how to secure your position in the competition with one of the most profitable companies in the world: be a better bank. Launch a system that your customers – and everyone in your market – actually needs and wants. Make it super-easy for individuals and business owners to pay and get paid – in any damn way they like. Stop restricting, start facilitating.”