Google abandons plan to offer checking accounts like a bank

Google will not offer its own bank accounts to third parties. At least, not for the time being. After several years in development, the project comes to an abrupt end that takes the Mountain View giant out of the race in which the tech companies are in to offer their own products related to the financial sphere.

It is revealed by The Wall Street Journal, who already gave to know in the first instance the efforts of the firm in this field, in information that has subsequently confirmed Google.

Google Pay.

The product, christened Google PlexGoogle Plex, had the support of major industry players such as Citigroup and Stanford Federal Credit Union for the launch of checking accounts. The original plan also included the issuance of Mastercard debit cards.

The decision to end its development comes less than a year after the launch of the new Google Pay. With it, the company offered an experience much closer to that of other virtual banks. and leading virtual banks of the moment, paving the way for its future incursion. One that, for the moment, will not happen.

Google and the future of banking

Google isn’t the only tech giant interested in the financial spectrum. Apple, for example, already offers its own credit card in partnership with Goldman Sachs and is working on enhancing its offering with several more features. Facebook looks to unify payments across its platforms and launch its Diem cryptocurrency – and all the infrastructure that implies around it.

Google Pay

That is why it seems unlikely that Google will completely stop exploring the possibility of offering financial services at a later date. From the company led by Sundar Pichai said in a statement that, for them and their partners, it is “very clear that there is a consumer demand for simple, seamless and secure digital payments for online and physical transactions in stores”.

However, for now, the approach will be simpler. They will focus “primarily on providing digital enablement for banks and other financial service providers rather than us serving as a provider of these services”.

If there’s one thing a big tech can do, it’s work as an infrastructure enabler. Becoming something close to what would be understood as a bank, however, is something that has proven more complicated.