Google Reportedly Launching New Payments API Called Android Pay

Google is the first company to test the mobile payments space. In 2011, the company launched Google Wallet, but wireless carriers were not ready for the technology, fearing that the search engine giant will exploit the system. Consumers, too, were slow to adapt. According to comScore, 41 percent of American consumers were aware of Google Wallet’s existence in 2012, but only 8 percent had used it.

Today, the mobile payments space is thriving, thanks to Apple’s own mobile payments system: Apple Pay. When Apple announced Apple Pay last year, the consumer market immediately embraced the innovation–a testament to Apple’s effective strategy, which is to create the best products. Apple doesn’t have to be the first in everything. The company excels at outperforming the competition.

According to Ars Technica, Google is planning to launch a new mobile payments API called Android Pay at Google I/O in May. A source with knowledge of Google’s plans revealed to the website that Android Pay will power in-store and in-app payments for third-party apps, allowing companies to add a mobile payments option so that consumers can store their debit or credit card information. Android Pay will also allow tap-to-pay transactions in brick-and-mortar shops, the source added.

However, the source said that Google will continue to support Google Wallet. Having two competing products could be the product strategy of Google; it’s also beneficial to consumers who don’t want to use Google Wallet or vice versa. By launching Android Pay, Google will have a product to compete with Apple Pay. Samsung recently acquired LoopPay and, most recently, Google bought Softcard. Meanwhile, Google didn’t comment on the report.

Source: Ars Technica