7 of Google's Cutting-Edge Plans for Payments

May 20, 2016 2:32 AM

Sundar Pichai, chief executive officer of Google Inc., speaks during the Google I/O Annual Developers Conference in Mountain View, California, U.S., on Wednesday, May 18, 2016. Google unveiled a new video calling application named Duo that will compete with Apple Inc.'s FaceTime. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

Google revealed a dizzying number of projects at this year's Google I/O event, and it is courting developers to turn each of them into a thriving commerce platform. Whether or not Android Pay was mentioned by name, it was an undercurrent of nearly every offering. (Pictured: Google CEO Sundar Pichai)

An attendee watches a presentation during the Google I/O Annual Developers Conference in Mountain View, California, U.S., on Wednesday, May 18, 2016. Google unveiled a new video calling application named Duo that will compete with Apple Inc.'s FaceTime. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

Instant Apps

The biggest barrier to mobile commerce is getting the user to download an app and set up an account, particularly for brief interactions like parking payments. Google's Instant Apps project eliminates all of those steps, letting lightweight versions of apps instantly load for one-time use and tying them to Android Pay to handle payments.

Sundar Pichai, chief executive officer of Google Inc., speaks during the Google I/O Annual Developers Conference in Mountain View, California, U.S., on Wednesday, May 18, 2016. Google unveiled a new video calling application named Duo that will compete with Apple Inc.'s FaceTime. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

API for E-Commerce

E-commerce shares the same hurdles, which is why Google developed the PaymentRequest API. A merchant that uses this API can accept Android Pay payments from within the Chrome browser, and the shopper can approve the purchase with fingerprint authentication.

An automated teller machine (ATM) stands outside Bank of America Corp. headquarters in Charlotte, North Carolina, U.S., on Monday, May 2, 2016. Bank of America's revenue may decline 1 percent in 2016, similar to 2015, before growing 6-7 percent in 2016-17, based on a consensus of analysts in a Bloomberg Industries report published in April. Photographer: Chris Keane/Bloomberg

Chris Keane/Bloomberg

Bundled with Banks

Banks can also link their apps to Android Pay by providing ATM access or by linking a payment card to Google's mobile wallet. Bank of America has already teamed up with Google for ATM access.

An attendee displays Google Inc. Android Pay icon on a mobile device for a photograph during the Google I/O Annual Developers Conference in San Francisco, California, U.S., on Thursday, May 28, 2015. Google unveiled payment services, security upgrades and access to HBO movies and shows for its popular Android software, seeking to push back against growing competition from rivals such as Apple Inc. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

Android Pay Rewards

Android Pay has a role in the physical world as well, and Google plans to make the most of the NFC readers merchants have placed in their stores. In addition to paying for purchases, Google wants NFC to power consumer registration for store loyalty accounts.

Mario Queiroz, vice president of product management for Google Inc., speaks during the Google I/O Annual Developers Conference in Mountain View, California, U.S., on Wednesday, May 18, 2016. Google unveiled a new video calling application named Duo that will compete with Apple Inc.'s FaceTime. Photographer: David Paul Morris/Bloomberg *** Local Caption *** Mario Queiroz

David Paul Morris/Bloomberg

In the Home

Google's voice assistant will be a big part of its Google Home and Android Auto products, which allow users to make queries and payments whenever these devices are within earshot.

Allo and Assistant

Google is also putting more digital brainpower into its mobile apps. The upcoming Allo messaging system will treat the Google assistant as a party to any conversation, allowing texters to make restaurant reservations or order products without leaving the chat window.

David Singleton, director of Android engineering for Google Inc., speaks during the Google I/O Annual Developers Conference in Mountain View, California, U.S., on Wednesday, May 18, 2016. Google unveiled a new video calling application named Duo that will compete with Apple Inc.'s FaceTime. Photographer: David Paul Morris/Bloomberg *** Local Caption *** David Singleton

David Paul Morris/Bloomberg

Android Wear 2.0

The next iteration of the Android Wear smartwatch platform still doesn't seem to require NFC for payments. But it does allow developers to break the wearable's reliance on the phone, and lets watchfaces connect to any app including commerce apps rather than show only a subset of device-specific stats.