The banks usually protest because the big names in technology, Google, Facebook, Apple and Amazon, compete with them without meeting all the regulatory and capital requirements that come with being a bank. These large companies control hundreds or billions of customers, that is why financial institutions fear entering the business through the front door or the back door.
Google, a subsidiary of Alphabet, has the world's leading Internet search engine, the most used email address and even a news broadcaster. With this movement, he enters the world of transfers and card payments, which will begin to provide financial services to private consumers and companies, as published by the Irish Times. However, the regulation specifies that "payment entities may not carry out the collection of deposits or other reimbursable funds from the public".
The regulator granted authorization to Google Payment Ireland under the second regulation of the Payment Services Directive (PSD2), on December 23rd. PSD2 is a set of rules designed to break the monopoly of banks in the payment system in Europe by allowing third parties to offer new products and regulated payment services to the clients of the entities.
Following the steps of Facebook
The entry of Google comes two years after Facebook obtained a license of electronic money, a more limited permission to work in the world of transfers. Google also just obtained a full license of electronic money granted by the Bank of Lithuania at the end of December. This circumstance demonstrates the giant's interest in the financial sector.
Up to now, the Mountain Vieu company I only had Google Pay, which is a digital wallet with which you can make payments and that it replaces Android Pay and Google Wallet. It offers to unify in a single place both the credit and debit cards, along with the rest of affiliation cards or points. The new application is a direct rival of Apple Pay, the payment platform of the Cupertino, Last year, Google said that this application would serve to pay, as digital wallet in various products, not only mobile, and that would also allow to send and ask for money.
"We are constantly working to support our customers in Europe. We have applied for a payment license in Ireland as part of these efforts, framed in projects across Europe, "a Google Ireland spokeswoman told the newspaper, adding that Google had stated that it was more in favor of working with banks than becoming in one of them, but the size of the company, with a stock market value of 632,000 million euros, makes it a player feared by all.