Google Pay could allow in-store payments

The Google Pay, or G Pay, app could feature a virtual card that can make in-store payments.

9to5Google claims a Google Pay upgrade includes a virtual card that lets users make Near-Field Communications (NFC) payments at cash registers. The virtual card uses money from the users’ G Pay  balance for the payments.

Hence, it could be possible to use funds from peer-to-peer (P2P) payments to cover Google Pay purchases. Consequently, people could use Google Pay to send cash straight to friends or relatives.

The new Google Pay virtual card is an NFC card. That means it makes wireless payments through cash registers at many US retailers. The virtual card resembles the defunct Google Wallet Card that let users pay with P2P funds in-stores between 2013 and 2016.

The difference is that the current card uses the same NFC payment system as Apple Pay and G Pay. NFC uses a wireless signal to communicate with cash registers and ATMs.

Is a Google Bank Account Coming?

Moreover, Alphabet (NASDAQ: GOOG) is planning a Google Bank Account they could call Google Plex, 9to5Google claims. Google Plex could be a digital bank account. 9to5Google did not say which bank will issue the Google Plex account. 9to5Google provides no verification for the Google Plex account claims.

Hence, Alphabet (NASDAQ: GOOGL) is becoming a financial institution and possibly a bank. I think the Google Pay upgrades and Google Plex will attract the attention of federal regulators.

I am skeptical of the Google Plex claims because in the US bank accounts must carry Federal Deposit Insurance Corporation (FDIC) insurance. I cannot imagine Alphabet’s management submitting to the additional federal regulation bank accounts require.

I think the convergence of Big Tech and Big Banks will trigger a public reaction that will make a Google Bank account politically impossible.