Alphabet Inc (NASDAQ:GOOG) enables Text Message payments in Google Wallet
Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) is not letting Google Wallet payments service fade away. The company has enabled text message peer-to-peer payments feature in Google Wallet. The simplified P2P feature in Google Wallet certainly complicates the competition landscape for PayPal Holdings Inc (NASDAQ:PYPL).
Alphabet Inc (NASDAQ:GOOG) appears to be realigning its various payment services. An update to Google Wallet indicates that the company is refining the Wallet to serve the P2P payments market. In that case, Android Pay appeared targeted at the commercial market – for consumer to vendor transactions.
The update that Alphabet Inc (NASDAQ:GOOG) has made on Google Wallet allows users of the service to send money to their contacts by way of SMS. The company says that when a Wallet subscriber sends money to another person in the network, a text message with a secure link appears on the phone of the recipient. To claim the money, the recipient simply enters their debit card and the money will be in their back account in a matter of minutes.
The text message money transfer feature in Google Wallet is expected to arrive in the next few days. However, its arrival could spell doom for PayPal, the giant of online P2P payments. The accelerated way of sending and receiving money through the improved Google Wallet may challenge PayPal’s competitive advantage at a time when the latter is also struggling to grow its user base.
Google Wallet is available on both Apple Inc. (NASDAQ:AAPL)’s iOS and Android mobile platforms.
Apple on target?
Alphabet Inc (NASDAQ:GOOG)’s improved Wallet not only threatens the wellbeing of PayPal, but could also hurt Apple in the future. There are reports that Apple is also mulling a P2P payment service that could be built into Apple Pay or rendered as a standalone service. Whichever way Apple chooses to serve it, it will have to face the enhanced Google Wallet.
Alphabet Inc (NASDAQ:GOOG)’s decision to separate Google Wallet from Android Pay also brings clarity to its various payment services besides widening its addressable market.
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