Google Launches Google Pay to Rival Apple

On Tuesday, Alphabet Inc.'s (GOOG) Google division rolled out a new product set to directly challenge Apple Inc.'s (AAPL) Apple Pay. Google Pay will replace pre-existing products Google Wallet, an application that let users send money to friends and family, and Android Pay, a solution that let Android users buy goods in brick-and-mortar stores by holding their smartphones next to a sensor at checkout. Google's new mobile payments app is the tech giant's third attempt at a mainstream payment service. A few years ago, the search engine leader launched Google Wallet, before scrapping it for Android Pay. The new app will include features from both. (See also: 3 Reasons Why Apple's Shares Will Outperform.)

The app's home page will show recent transactions and make personalized suggestions on local stores to visit that accept Google Pay based on users' past purchases. The service may also be used for paying online at partner sites such as Airbnb and Fandango. A Cards section will store digital versions of credit, debit and reward cards. Through the app, users can check out using their Google credentials rather than typing in credit card information. The new application will also have the ability to pay for public transportation in cities around the world including London; Kiev, Ukraine; and Portland, Ore. 

Offering a P2P Service

Within the next few months, the Mountain View, Calif.-based company says the app will allow users in the U.S. to send money to each other via Google Pay Send, mimicking Apple's Apple Pay Cash platform launched in 2017. The service will also head off against others offered through platforms such as Facebook Inc.'s (FB) Messenger, Square Inc.'s (SQ) Square Cash, PayPal Holding Inc. (PYPL) and its popular P2P application, Venmo. 

Google Pay may take few days to reach all Android phones, while an iOS version is currently unavailable. Smartphone users who already have Android Pay installed on their devices will see the new app update automatically the next time they do an update. (See also: Apple Music Challenges Spotify Ahead of IPO.)

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