Google has publicly disclosed plans to discontinue the Google Pay app, transferring its capabilities to Google Wallet. Such a strategic shift could suggest a possible retreat from the direct payment industry by the tech titan.
The implications of this decision remain uncertain, but it will undoubtedly prompt significant changes in the digital payment sector. Despite initial aspirations to capture the financial transaction market, a succession of questionable decisions and underperforming product launches led to the Google Pay division’s regression.
Introduced as a trailblazer in mobile payment technology, Google Wallet’s early success was fleeting. The convoluted application and security concerns caused users to switch to the more simplified Google Pay. Despite improvements, Google finds it challenging to compete with market leaders such as Apple Pay and Samsung Pay.
The entry of Apple Pay in 2014 marked the beginning of challenging times for Google’s payment services. To compete, in 2015, Google launched Android Pay – a concept similar to Apple’s but with payment tokens instead of actual card numbers.
Transition from Google Pay to Wallet
Despite competition, Google fostered crucial partnerships with banks to bolster its services.
In 2018, Google introduced Google Pay, a streamlined system integrating Google Wallet and Android Pay features. Google has since strived to keep up in the fast-paced market by continually innovating to meet the needs of its global users.
Google Pay, despite multiple rebranding attempts, reflects continuous development and improvization. In 2020, Google unveiled an updated Google Pay app, reinforcing its commitment to provide straightforward and safe digital payment solutions.
In 2021, Google introduced a new Google Pay version, based on Google Tez, initially created for the Indian market. However, it fumbled adapting to the U.S. market due to the unfamiliar format of using phone numbers for I.D. This prompted Google to redirect emphasis on its traditional app. The conventional Google Pay version, more tied to a Google Account, also allowed sophisticated financial tasks such as sending money and online purchasing.
The transition to the new Google Pay posed significant challenges, leading to two Google Pay apps appearing on the Play Store, damaging Google Pay’s credibility as a trustworthy payment service. This points to strategic blunders in Google’s approach to this industry and emphasizes the need for future strategic changes to regain its footing in the marketplace.
