Tag: Google Pay

  • Google Sues US CSFB Over Alleged Government Overreach

    Google Sues US CSFB Over Alleged Government Overreach

    Google is taking legal action against a ruling from the US Consumer Financial Protection Bureau (CFPB) that allows the bureau to “conduct examinations on a periodic basis” to check if Google is following consumer financial regulations.

    Allegations Against Google

    The consumer finance regulator has focused on Google Pay and Google Pay Balance. According to a report published by Engadget, the CFPB stated there was “reasonable cause to determine that Google has engaged in conduct posing risks to consumers.”

    It pointed out two main concerns: one related to “allegedly erroneous transactions have posed risks to consumers,” and the other about the “prevention of fraudulent and unauthorized transactions,” which the CFPB claims also posed “risks to consumers.”

    Changes in Google Pay Services

    The CFPB noted that the Google Pay App was “discontinued” in February 2024, and that the Google Pay Balance platform was “available for limited purposes.” However, this was not sufficient to stop the “designation of Google for supervision, although it may affect whether the CFPB decides to conduct an examination.”

    In its lawsuit, Google contended that “a product that no longer exists is incapable of posing such risk.” A spokesperson for the company shared a statement with TechCrunch, saying, “This is a clear case of government overreach involving Google Pay peer-to-peer payments, which never raised risks and is no longer provided in the U.S., and we are challenging it in court.”

    Conclusion

    The ongoing legal dispute highlights the tension between tech companies and regulatory agencies. As the situation develops, it will be crucial to see how both sides present their arguments and what the outcome will be.

    Tags: , ,
  • Google Pay app to shut down in the US in June

    Google Pay app to shut down in the US in June

    In a recent update, Google has announced that the standalone Google Pay app will be phased out in the United States on June 4, 2024, as part of a strategy to consolidate its payment services. This decision is aimed at simplifying Google’s payment offerings by shifting focus to Google Wallet, which currently has a larger user base across 180 countries compared to Google Pay.

    Google Pay Continues in Singapore and India

    While the Google Pay app will no longer be available as a standalone service in the US, it will continue to operate in Singapore and India to meet the specific needs of users in these markets. Google highlights that this move is intended to streamline payment systems for both users and developers.

    Despite the discontinuation of the Google Pay app, essential functionalities such as payment management and in-store payments will still be accessible through Google Wallet for users in the US. However, features like peer-to-peer payments, balance management within the app, and discovering offers and deals will be removed. Google recommends using the deals feature on Google Search as an alternative for accessing offers and discounts post the app’s shutdown.

    Managing Balances and Transferring Funds

    For users concerned about their balances within Google Pay, there will be an option to transfer funds to a bank account via the Google Pay website after June 4, 2024. This ensures that users can securely manage their remaining balances even after the app is discontinued.

    The transition signifies a new chapter in Google’s payment ecosystem, which began with Google Wallet in 2011 and went through various changes with the introduction of Android Pay in 2015, eventually merging into Google Pay in 2018. With Google Wallet now taking a prominent role, it offers a broader range of functionalities beyond payments. This includes storing transport passes, state IDs, driver’s licenses, and virtual car keys, utilizing technologies like ultra-wideband (UWB) for improved compatibility.

    Details:

    • Date of Google Pay App Discontinuation in the US: June 4, 2024
    • Google Wallet User Base: Five times larger than Google Pay across 180 countries

    As Google transitions its payment services, users can expect a more integrated and streamlined experience with Google Wallet while bidding farewell to the standalone Google Pay app in the US.

    Tags: , ,
  • Google Pay Introduces Convenience Fee on Mobile Recharge Transactions in India

    Google Pay Introduces Convenience Fee on Mobile Recharge Transactions in India

    Google Pay Begins Charging Convenience Fee on Mobile Recharge Transactions

    Google Pay, one of the most widely used online payment apps in India, has started imposing an additional fee on consumers for prepaid recharge purchases. This move follows in the footsteps of other popular payment apps in the country, such as PhonePe and Paytm. With over 60 million active users, Google Pay is the second-most popular payment app in India, known for its P2M and P2P UPI transactions.

    The Shift Towards Convenience Costs

    Previously, users were only required to pay the amount charged by the telecom operator for the service, making it a completely free service. However, it seems that Google is now exploring ways to generate revenue from India’s multibillion-dollar digital payments industry. As a result, users who recharge their mobile prepaid plans through Google Pay may soon be subject to convenience costs of up to 3 rupees. This means that the only way to avoid these charges is to purchase recharge plans directly from the operator’s website.

    Limited Impact on Other Transactions

    Currently, Google Pay only applies convenience costs to mobile recharges. Other transactions, such as paying utility bills, remain free of any additional fees. UPI transactions, both for personal and commercial use, also do not incur any charges on Google Pay.

    Changes in Terms of Service

    Although Google has not yet made an official announcement regarding the new convenience charge adjustment, it secretly updated its Terms of Service for India on November 10, 2023. This suggests that the introduction of convenience fees on mobile recharge transactions is a deliberate move by Google to explore monetization opportunities in the Indian digital payments industry.

    As Google Pay follows in the footsteps of other payment apps, it remains to be seen how Indian users will respond to this new development. With the convenience costs in place, users may consider alternative platforms or opt to purchase recharge plans directly from the telecom operator’s website to avoid additional fees.

    Tags: , ,