Google Pay, Banks to Partner on Mobile Checking Accounts

The tech giant and six banks will give U.S. Google Pay users access to checking accounts next year.

August 05, 2020

MOUNTAIN VIEW, Calif.—Google will be joining with a half dozen banks to offer U.S. Google Pay users access to mobile checking accounts early next year, USA Today reports. The search company is making a move to expand its financial services as U.S. consumers continue to do more online banking.

The checking accounts might be available in  early 2021, according BBVA USA, a bank that is joining the venture. Other banks in the deal include SEFCU, BMO Harris, Bank Mobile, First Independent Bank and Coastal Community Bank.

The partnership will give Google even more user data in a time when more consumers are embracing digital banking during the coronavirus pandemic. This announcement comes after Google’s previous arrangement with SFCU and Citi for other mobile banking partnerships.

“Collaborations with companies like Google represent the future of banking. Consumers end up the true winners when finance and big tech work together for their benefit,” said Javier Rodríguez Soler, president and CEO at BBVA.

Currently, Google Pay’s digital wallet and payment system allows users to receive and send funds, as well as access to banking info on a user’s device to pay for app, online and in-person transactions.

Google will work on the front-end experience while giving “financial insights” to its banking partners, who will handle advanced security. For example, the mobile checking account will be added on BMO’s current banking infrastructure, with the digital accounts being FDIC-insured.

Google isn’t the only tech company dabbling in online banking. Last year, Apple and Goldman Sachs launched Apple Card, a branded, digital credit card managed via the iPhone Wallet app. Facebook also tried its hand at cryptocurrency with Libra but halted widespread plans after regulators took a closer look.