Not one, but two tech giants launched financial services this week. That is the case with Google and Facebook — each with a different solution.
O Google will offer digital checking accounts, while Facebook launched Facebook Pay, a digital wallet that allows users to send money via WhatsApp and Instagram.
Google will rely on banking partners to offer the service. The company has partnered with Citigroup and a Stanford University credit union.
The project is being called "Cache" and is expected to reach the public as early as next year. The advantage is that Google already has a vast customer base of millions, making the adoption of its digital accounts easier worldwide.
A similar phenomenon is happening with Facebook. The network will allow its millions of users to pay for event tickets, games, and to other individuals without leaving the platform, through Facebook Pay.
Unlike Google, the company founded by Mark Zuckerberg will not rely on banks, but on companies such as PayPal and Stripe.
Payments can be validated through facial recognition or biometrics. Currently available in the United States, there is no confirmed timeline for when it will arrive in Brazil.
We are going through a transformation in the technology sector. After gathering millions of customers and learning their consumption habits, companies are creating services that go beyond their original areas of expertise.
A similar case occurred with Apple as well, with the launch of its own credit card, the Apple Card.
The question that remains is: will these companies succeed in the financial market? Will they, like fintechs, threaten the dominance of major banks? Would you use a financial service offered by Google or Facebook?
Source: Startse