Google may be the next technology giant to invest in a new financial product. According to the Wall Street Journal, the company plans to launch a checking account service for Google Pay users in 2020.
The company is already working on what was internally called the Cache project. According to WSJ, accounts will not be managed by Google, but by partners like Citigroup and Stanford University’s credit union.
The two are already participating in the project, which is open to receiving more companies. Google’s vice president of product management, Caesar Sengupta, told the WSJ that the idea is to keep partners ahead of the product.
Banks are expected to manage the financial structure of the new service, while Google may offer solutions such as loyalty programs. “Our approach will be to form a deep partnership with the banks and the financial system,” said Sengupta.
By investing in a checking account service, the company will be able to find out how much people earn and how they spend their money. The executive says the company will not use this data for advertising purposes.
It is not yet clear whether the current account will have fees. If it is free, the company would be better able to compete with traditional competitors, since customers do not usually change banks so easily.
Google’s current account plan joins Apple Card, a credit card launched in August, and Libra, Facebook’s cryptocurrency scheduled to be announced in 2020, but which has lost several of its partners in recent weeks.