Google has clearly outlined its strategy to beat Apple in the mobile payments market and it’s called Android Pay, which is also the replacement for Google Wallet on your smartphone.
Android Pay will power in-app and tap-to-pay purchases on Android devices, and while Google Wallet will stick around, it’ll be mostly for peer-to-peer payments and Play Store purchases outside of Android.
While Google had been leading the charge in introducing technologies such as NFC and card emulation way ahead of Apple, the company lacked focus on building relationships with partners.
That’s where Apple Pay blew the competition out of the water, and within months became the largest mobile payments service in the US. Google Wallet was nowhere, and with Android Pay, Google is giving it another shot.
As you might expect, Google said it will roll out Android Pay in the US first, then followed by other regions. The company said its service will soon be accepted at over 700,000 store locations across the US and within 1,000 apps.
At a contactless payment terminal, a user just has to place their device near it, and a confirmation will pop up prompting users to pay. In apps, all users have to do is hit the Buy with Android Pay button.
Google is also natively supporting fingerprints with Android M, allowing the use of biometrics to authenticate payments via Android Pay. The company is also working on other security measures which will be detailed prior to the launch of Android Pay later this year.