Explain Google Pay to me

[SecondAttempt]

Wasn't sure where to put this. In the travel forum lots of people have been talking about how great Apple Pay is. I'm not an Apple guy but I signed up for Google Pay last night and used it in the wild for the first time today. All went well. So I understaand how to use it.

But I have some questions about the behind-the-scenes workings. How does Google profit? Am I going to be charged an extra fee? I am thinking not. Do the credit card companies pay them? Just curious how it works.

 

[Alan]

No extra fees, just a way of selling more phones I think (or in Apple’s case more watches as well since you can pay by Watch using ApplePay)

 

[SecondAttempt]

No extra fees, just a way of selling more phones I think (or in Apple’s case more watches as well since you can pay by Watch using ApplePay)

Thanks, although I think the phones are just a way to collect and sell more personal information!

 

[Trooper]

^ +1. More often than not, the product is in the mirror!

 

[tulak]

Thanks, although I think the phones are just a way to collect and sell more personal information!

Apple collects very little data on their customers.

Apple Pay is also designed to protect your personal information. Apple doesn’t store or have access to the original credit, debit, or prepaid card numbers that you use with Apple Pay. And when you use Apple Pay with credit, debit, or prepaid cards, Apple doesn't retain any transaction information that can be tied back to you. Your transactions stay between you, the merchant or developer, and your bank or card issuer.

https://support.apple.com/en-us/HT203027

One of the reasons I enjoy being in the Apple ecosystem.

As for Google, they store the transactions to your Google account, but don’t use it for ads:

We do not sell your information to anyone: Google Pay will never sell your transaction history to third parties or share it with the rest of Google for targeting ads.

https://support.google.com/googlepa...droid#zippy=,info-that-google-pay-may-collect

Which I found pleasantly surprising. I always assume that Google uses all data they collect on their customers, but it looks like Google Pay is an exception.

 

[Aerides]

How does Google profit? Am I going to be charged an extra fee? I am thinking not. Do the credit card companies pay them? Just curious how it works.

The CC companies and Google have all figured out there is profit to be had, even without that coming directly via transaction fees or sharing them (though who knows on that).

Google knows that the more ubiquitous they are, the more effective their ads are. Simple.

CC companies work with Google and Apple because they know you want to use your phone to pay, and want you to do that WITH their card, not without it.

 

[tulak]

As for how Google makes money, I’m assuming they get a cut per transaction from the credit card issuers?

I tried to search for this, but didn’t have any luck finding anything.

I know this is how Apple Pay makes money. It’s reported that Apple get about 0.15% per transaction from the credit card issues.

 

[MdaPetralia]

As for Google, they store the transactions to your Google account...

This the primary reason why I wont use Google Pay.

 

[Koolau]

As for how Google makes money, I’m assuming they get a cut per transaction from the credit card issuers?

Plus, I assume they gain even more information on your finances. That info is valuable.