ZCZC
BFF-15
US-INTERNET-BANKING-GOOGLE
Google checking account service on its way: report
SAN FRANCISCO, Nov 14, 2019 (BSS/AFP) – Google plans to launch a checking
account service next year in collaboration with Citigroup and a credit union
in Silicon Valley, the Wall Street Journal reported on Wednesday.
In a project code named Cache, Google is working on a system that will host
checking accounts clearly bearing the brands of the financial institutions,
which will handle security and regulatory compliance issues, according to the
Journal report.
The report quoted a Google executive as saying the company’s approach “is
going to be to partner deeply with banks and the financial system” in what
might be seen as a longer but safer route.
The move would come as internet titans become increasingly involved in
online financial transactions and e-commerce.
Apple and Google both offer digital wallets that can be used on smartphones
to pay for purchases online or in real-world shops.
Apple also recently released a credit card.
Amazon has been reported to be in talks with banks about creating a
checking account service.
Meanwhile, Facebook has been steadily building up e-commerce tools at the
social network as well as the ability to send money using its messaging apps
such as WhatsApp.
Facebook has gone a major step further, releasing controversial plans for a
global cryptocurrency called Libra.
Facebook had originally hoped to roll out Libra next year, but has met
fierce resistance from regulators and governments who see it as a threat to
their monetary sovereignty.
The social media giant’s chief executive Mark Zuckerberg last month opened
the door to scaling back plans for Libra if it cannot win approval as a new
currency for global exchanges.
Zuckerberg told US lawmakers on October 23 that the goal of Libra was “to
build a global payment system rather than a currency”.
BSS/AFP/FI/ 0814 hrs