(NASDAQ:GOOGL) Google recently began a large redefinition of its Android and iOS Google Pay app, and at least one analyst is persuaded that the update could endanger Square and PayPal but I do not think that Square and PayPal may lose sleep in the last time that Google has done this. Look back at the evolution of Google Pay, why it now draws more interest and why Square or PayPal couldn’t even be harmed.
As a basic substitute for credit cards, in 2015, Google Pay began with Android Pay. However in 2018 Google combined Android Pay to a Google Pay cell phone — which also enabled better connectivity of third-party software and websites — with Google Wallet.The recent update adds new personal finance features that allow users to connect the application to bank accounts, to monitor expense patterns, to check past purchases, to apply coupons online to shopping and more. It has also expanded contactless payments service at gas stations and also added integrated parking fees for select towns.
Currently Google Pay supports about 150 million users in 30 nations. That gives Square’s Cash App five times its reach but it is still hurt by the 361 million active PayPal accounts.
Recently, analyst Christopher Donat has called Square and PayPal the new Google Pay App a “threat” Donat primarily cited as proof of this development the emergence of Google Pay on app store charts.
Donat also noticed that Square’s Cash App downloads declined from an annual increase of almost 80% in April to about 12% in December. He said that PayPal’s Mobile Cash software has lately been downloaded primarily because of the new inclusion of cryptocurrency transactions.\But Android users are still using Google Pay to make purchases to their Play Store, so it is no wonder that downloads from the Android app came briefly after the recent update. NASDAQ:GOOGL has recently announced that in early 2021 purchases on the Internet would be discontinued, which in turn pressured consumers to uninstall the software.
Rankings from the Apple App Store say another story. According to Sensor Tower, Google Pay was briefly made the top financial app in the App Store by mid-December but slipped from the top 10 by the end of this month. Square Cash App will be first to be re-established, followed by Mobile Cash PayPal, IRS and Venmo.Google Pay seems to be costing multiple customers globally, but many fees typically come from the Play Store rather than from third-party applications.
According to the 2019 McKinsey Digital Payment Survey, Google Pay is not one of the top three in-app, web or peer-to-peer payment forms. In-store fees, where they are now well behind Apple Pay, were the only way. Before investing, you can check its income statement at https://www.webull.com/income-statement/nasdaq-googl.