By Ann-Marie Alcantara
Alphabet Inc.'s Google is trying to draw more people to its
payment app and keep them there longer with features such as a
reward system, new financial management services and a format for
listing payments that evokes text-message conversations.
The Google Pay app will eventually offer Plex, mobile checking
and savings accounts being introduced by Google in partnership with
11 banks and credit unions.
"It positions the mobile app and Google Pay to solve for a
broader set of a customer's financial needs beyond payments," said
Ross Cosner, vice president and analyst at Gartner Inc.
Google's redesigned app, which arrived in November, comes at a
time when its digital wallet competitors are rapidly expanding both
users and functionality. PayPal Holdings Inc. has its own app with
features like a payment installment plan, and the company's
peer-to-peer payment system, Venmo, offers check cashing and a
physical credit card with a QR code .
Many of these apps also include some of the same features as
Google Pay. Venmo provides users a social-media like feed of their
friends' payments, for example, complete with emoji and stickers,
and offers a cash-back reward system. Intuit Inc.'s Mint offers
users insights into their money, such as tracking spending in a
certain category.
The coronavirus pandemic has accelerated the use of digital
wallets on mobile devices and other forms of contactless payments.
The number of people using digital wallets at a point-of-sale
system is expected to increase to 93 million this year from 86.9
million in 2020, according to June estimates from research firm
eMarketer.
The design of the Google Pay app -- including illustrations, the
threaded payment "conversations," and a muted color palette -- aims
to make it feel less transactional and more about building
relationships with people and businesses in the app, said Mike
Holzer, director of user experience at Google Payments.
"It reflects this very conversational type of interaction," Mr.
Holzer said.
The app also tries to channel the "stories" format of short
vertical videos that are popular on social media platforms. The
stories-like images offer users a snapshot of coming bills and bank
fees. Google Pay has about seven types of these "stories," which
are personalized according to a user's spending, said a Google
spokesperson.
Other options let users connect the app to their Gmail and
Google Photos accounts to search for receipts and categorize
transactions.
Some of these user experience additions can make the app feel
more personal than others, experts say.
Threaded transactions feel chat-based, a design element that
many people are familiar with, said Chelsea Matthews, founder and
executive creative director at Another Creative Inc., a creative
agency. "It feels a bit more native than the way things are very
transaction-oriented on Venmo," she said.
The illustrations in the app are vibrant and give it a more
friendly feel than many payment apps, said Jess Jaime, senior
designer at Jaime Studio, a design agency.
Google Pay lags behind its more established rivals and the
question remains as to whether the new features are enough to help
it catch up. The app had 1.35 million average monthly active iOS
users in 2020, compared with 26.8 million for Cash App, 13 million
for PayPal, and 11.4 million for Venmo, according to Gartner
analysis of SensorTower Inc. data of the top five iOS payment apps.
Google faces a similar challenge on Android devices, with 1.33
million average monthly active users, compared with 12.4 million
for Cash App, 12.2 for PayPal and 10.7 million for Venmo, according
to Gartner's analysis of SensorTower data.
And because Google Pay's capabilities function best when users
allows the app to access their Gmail and Google Photos accounts, it
may face additional hurdles, said Jenny Nicholson, executive
director, brand experience at McKinney Ventures LLC., an
advertising agency.
Google faces a series of antitrust lawsuits, including one filed
by the Justice Department in October. Google has responded in posts
online, saying its free products help people and small businesses,
and that the Justice Department's suit is "deeply flawed."
People like that they can use Google for so many purposes but
can be nervous about giving up even more information to the
company, Ms. Nicholson said. "Does Google have the kind of trust
where people want to connect all of their financial information to
Google?" she said.
Google Pay's Mr. Holzer said the app was designed with privacy
principles such as transparency and control in mind. The
integrations with Gmail and Photos are off by default and need to
be activated by users who are interested.
"We have seen from our experience around the world that when we
build features that are truly helpful for our users and provide
transparent controls for them, adoption does follow," Mr. Holzer
said.
Write to Ann-Marie Alcantara at ann-marie.alcantara@wsj.com
(END) Dow Jones Newswires
February 23, 2021 17:07 ET (22:07 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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