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Google treads forth in its trip to discover a place in the payments world. At its I/O 2013 conference, the tech titan said that Google Pocketbook will incorporate with Gmail accounts so that individuals send money through a simple email. In banking, the feature is the equivalent of person-to-person (P2P) payments.
First, Gmail users connect their checking account, debit cards and credit cards to Google Wallet. Or, they can fund their Google Wallet account so that there’s a balance that’s easily offered.
When sending an email, individuals can choose a dollar-sign icon that permits them to select the financing source and send the repayment. Recipients will have the money added to their own Google Wallet balance, which can be transferred to a linked checking account. (If the recipient doesn’t yet have a Gmail account, they’ll be asked to sign up for one to gather the funds.)
There’s no charge to send cash with Gmail and Google Wallet if the financing source is a savings account. If the financing source is a debit or credit card, there’s a deal fee of 2.9 percent of the repayment (minimum of $0.30).
“We are rolling out this feature over the coming months to all UNITED STATE Gmail users over 18 years of ages, so keep an eye out for the $ icon in the attachment options,” said Travis Environment-friendly, product manager at Google Wallet, in a blog post. “You can likewise get earlier gain access to if your friends have the feature and send money to you.”
Google to drive adoption
With this brand-new function, Google is taking on similar P2P repayment services offered by PayPal, Dwolla, Popmoney, banks and others.
PayPal has the same charge structure as Google. Dwolla charges a $0.25 cost to the recipient if the repayment is more than $10 (no fee is the repayments is $10 or less). Popmoney charges $0.95 per repayment sent. Banks like Chase and Bank of America don’t impose any fee to send out or get money.
Although Google’s pricing is not really extraordinary, the company has a significant advantage over its competition. Last summer, Google stated that it’d more than 425 million active Gmail users. It’s hard to discover somebody who doesn’t have a Gmail account.
At other P2P-payment carriers, recipients are always asked to develop an account with the supplier and enter their individual and financial info to collect funds. If one pal sends out cash with PayPal, an additional pal sends a repayment through Dwolla, and another friend sends money through Chase QuickPay, you have entered your details three times and registered for three different accounts, which you probably won’t utilize frequently.
With Google’s P2P function, consumers don’t need to handle several P2P-payment accounts due to the fact that it’s more than likely that the sender has a Gmail account.
Marking itself as the hub for P2P repayments, Google has the potential to stimulate its adoption.