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Google Inc. today announced the availability of a payment card to accompany its Google Wallet online and smart phone-based service.
The card, which is funded by money held in a consumer’s Google Wallet account, can be used at point-of-sale locations that accept MasterCard Inc. transactions. MasterCard was part of the launch of Google Wallet in 2011. Google Wallet debuted as a mobile wallet, but later added e-commerce payments when Google Checkout was folded into Google Wallet.
Consumers choose either credit or debit at checkout and enter their Google Wallet Pin, if prompted for it. They also can use the card to withdraw money at ATMs. The POS spending limit is $5,000 per 24 hours, but does not include withdrawals made at ATMs or banks.
“We released the Google Wallet Card to help users quickly access their Wallet balance in stores or at ATMs, without having to wait for money to transfer to their bank account,” a Google spokesperson says.
The card currently works only within the United States. It has a magnetic stripe on the back and does not contain a contactless chip.
The card carries no fees to make a purchase or receive money. There is no fee to send money to another Google Wallet account or a bank account. There is a 2.9% fee to send money using a credit or debit card. For merchants, Google Wallet has no fees aside from existing payment processing agreements.
Consumers can order a card from their Google Wallet accounts or via the Google Wallet app for Android, which will be updated later this week. Consumers must go through an identity verification process to receive a card.
Google is not alone in offering a physical card tied to its online wallet. PayPal, the payments unit of eBay Inc., last year began offering a card that consumers could use in stores. It is part of an effort to expand PayPal acceptance beyond e-commerce.
The Google Wallet Card and PayPal card are necessary because no pure mobile wallet can work everywhere in the United States, says Todd Ablowitz, president of Littleton, Colo.-based Double Diamond Group. “The essence of a mobile wallet is all about it working everywhere,” Ablowitz says. “The best practice is to send out a plastic card so the same wallet can be used for mobile-enabled merchants and non-mobile enabled merchants.”
The debut of the Google card also signifies a more concerted and holistic effort by the online search and advertising giant to compete against PayPal, he says. “No question they have a bulls eye right on PayPal,” Ablowitz says.
