Google to offer checking accounts in partnership with banks starting next year

Google to offer checking accounts in partnership with banks starting next year

In contrast with Apple's tie-up with Goldman Sachs on its new credit card, Google is set to take a backseat on the checking account, with its partners' brands front and centre. Google Pay is expected to have 100 global million users by 2020, the Journal says, while Apple Pay had around 140 million users a year ago.

Google next big venture appears to be banking.

Google has partnered with Citigroup Inc. and a local California credit union to offer consumer checking accounts, a person familiar with the matter said. There will still be integration between Google and the accounts, though, and some of it might raise concerns among regulators. A recent article from mybanktracker.com said Citi's basic checking accounts charge a $12 monthly fee, a $34 fee per overdraft and a $2.50 charge to withdraw money from a non-Citibank ATM.

The details of the project, named Cache, were first reported by the Wall Street Journal and follow moves by tech heavyweights Apple and Facebook into the financial industry this year.

Skepticism: But consumers are rightly skeptical of technology companies' ability to keep their data private and secure.

Now the Mountain View, California-based tech giant wants to add checking accounts. He did say, however, that the company would not sell users' financial data. Apple launched a credit card earlier this year, and Facebook announced plans in June to roll out a digital wallet for its Libra cryptocurrency.

News of the project comes a day after a whistleblower revealed the existence of Project Nightingale - Google's partnership with the healthcare giant Ascendant that could give Google access to personal medical data of up to 50 million Americans. But just because Google isn't selling the data doesn't mean it isn't collecting and examining it. "It's not clear that anyone other than high-tech companies would benefit from allowing commercial companies to provide those products and services, rather than financial companies".

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