Google is reportedly testing its own Google-branded smart debit card that will help customers make and track purchases made online and in stores, according to a report from TechCrunch.
The project is meant to be a new centerpiece for Google’s existing Google Pay system, which currently only does online and peer-to-peer payments by adding a physical debit card that could be used for a wider variety of purchases. An expanded debit card presence would allow Google to be more useful in keeping track of payments and purchases, as well as provide the company with valuable insight on consumer spending.
Security would play an important role as well. You’d have a virtual card number that you could quickly reset or block, and you could keep using your virtual card if you need to lock a lost or stolen physical card. There are also indications that you’ll have control over the data you share.
In a response to TechCrunch, a Google spokeperson didn’t directly acknowledge plans for the card and instead repeated the statement it issued on the banking leak in November, when it confirmed it was “exploring” partnerships for smart checking accounts in Google Pay. At the time, it mentioned that its “lead partners” were Citi and Stanford Federal Credit Union, both of whom are expected to cooperate with Google on the debit card.
There are plenty of incentives for Google to dive into debit cards. Like Apple and other tech giants, it can use services like this to generate a steady stream of revenue on top of its existing businesses. And remember, Google is an advertising giant it could use data to improve its ad measurement and even target ads, at least for those customers who opt to share more info.
TechCrunch’s report also doesn’t mention when it plans to launch the debit card or if the test will ever get a full consumer release. The company did release a statement to TechCrunch noting, “We’re exploring how we can partner with banks and credit unions in the US to offer smart checking accounts through Google Pay, helping their customers benefit from useful insights and budgeting tools, while keeping their money in an FDIC or NCUA-insured account. Our lead partners today are Citi and Stanford Federal Credit Union, and we look forward to sharing more details in the coming months.”
