Google Pay enters remittance market

Alphabet (NASDAQ: GOOG) has entered the $540 billion international remittance market.

Google Pay users can now send money to GPay users in India and Singapore in a partnership with Western Union (NYSE: WU) and Wise; formerly Transferwise, TechCrunch reports. Google Pay users can now use Western Union to send money to users in over 200 countries and Wise to send money in over 80 countries.

There is also a remittance feature that allows US Google Pay users to send money to people in India and Singapore. Remittances are money people send to friends or relatives in other countries. For example, an Indian working in California could send money to her mother in Kerala.

Remittances are big business

Remittances are big business, the World Bank estimates people sent over $80 billion to India in 2019. The US is the world’s largest sender of remittances while India is the biggest remittance destination.

Remittances are big business, the World Bank estimates people sent over $80 billion to India in 2019. The US is the world’s largest sender of remittances while India is the biggest remittance destination.

I think remittances could be a huge moneymaker for Alphabet (GOOGL) and Western Union. Alphabet can attract many new Google Pay users by eliminating the need to go to a brick and mortar store to wire money. Alphabet could make even more money by adding the ability to wire money to businesses through Google Pay.

Another big winner is Western Union which no longer has to rely on stores to attract business. Instead, Western Union can now eliminate the brick and mortar outlets and wire money through an app.