While we all know that Google is one of the biggest and most-profitable companies in the entire world, but did you know that they are becoming more than just search engines and Gmail? In May 2013, Google had a soft-launch of creating a money-sharing system that could compete with the likes of PayPal, but without going through an off-site to do so.
The service—called Google Wallet—allows users to send money to people for free from a linked bank account, or with a small fee from a credit card, meaning Google will have direct access to users’ bank info and email—but more on that later. So instead of worrying about your buddies not paying you back after you pick up the round of golf, anyone with a Gmail account can get the money to you before even teeing off on the first hole.
The service has technically been available since last summer, but Google appears to have liked the test run and are pushing it out to a much bigger audience. This all sounds great for uses, but how does it help Google? That’s where things get interesting, because we all know that a company worth nearly $270 billion knows how to make cash.
Unlike competitors like PayPal, Square, etc., Google Wallet already has a platform that millions of users already use to advertise in. In other words, all of those spam-like messages one would receive from PayPal will come directly through Gmail—meaning you’re more than likely going to open it since it involves your personal email account.
Once Google gets a few million users to sign-up for their wallet system, it will be intriguing to see how the company can tap in to the global credit card system that everyone seems to be using these days—which will only add more value to the entire company.
Photo by Justin Sullivan/Getty Images
