Google gadgets and applications users will now be able to use or withdraw money in their Google Wallet with a prepaid debit card. Google Wallet is the company’s software application which lets people purchase goods online and make payments for them.
According to Google’s spokesperson, the prepaid debit card being issued by the company can be used at ATMs for withdrawing cash. The debit card will be accepted by many vendors across the US, who accept MasterCard as of now. In additions, the card would also be read on many millions of ATM machines. The company will not charge users any annual or monthly fees for this service.
The facility will give Google an edge in commerce because it will be able to collect information about spending habits of consumers and develop strategies accordingly. Earlier, the company intended to introduce a credit card but shelved the proposal. However, the company does have business credit card facility exclusively for Adwords. People who chose to advertise through Google use this special type of credit card facility.
With this debit card, Google is nudging out traditional banks, and credit card facilities. Online payment processors such as Paypal would now need to offer something better to remain in the market, if they have to retain their customers.