To survive, fintechs have two options: buy out or find growth and a model that is rigid enough to withstand GAFA. This week the question arose about Wise (ex-TransferWise).
The British company that conquered the international money transfer market with a revolutionary idea has just turned against Google and will work with them as a provider.
The American tech giant has just announced the launch of an international money transfer service on Google Pay. The finance app has over 150 million users.
Thanks to a partnership with Wise and Western Union, you can make transfers via Google easily, quickly and inexpensively. Everything is done from the American application, with a new interface in the form of a chat.
The service will be available in France and the rest of the world later this year. Because Google decided to limit functionality to two countries just for its beginnings. However, the company didn’t choose them at random.
India and Singapore will be the first two countries with the United States to have access to it. In view of the health situation in India, the number of transfers from the USA is currently increasing sharply. Market growth has also increased in Singapore since 2013.
Which place for Google Pay?
Right now, Google Pay is best known among its customers for its mobile payment tool, i. H. The NFC chip on our smartphone.
To reach 150 million users in 2020, Google Pay has increased its numbers thanks largely to its payment system in the Play Store, in the Google Application Store (and on Android smartphones).
In order to grow, GAFA continues to rely on partnerships and acquisitions. In this way, a new Google Pay bank account was set up in November 2020 in cooperation with several banks in the USA.
So Google’s role and strategy is not to attack the banking and financial markets directly, just to provide digital tools for the user experience by then adding partner banking APIs.
However, some agencies and regulators are wary of GAFA when making payments. In France, the Autorité de la Concurrence des Marchés published a new report last month called Fintech, questioning the rise of American big tech.
So are we being suffocated by the GAFA?