Article written by A Tech Inc
Google Wallet is a safer online payment system that rivals behemoths such as PayPal, Apple Pay and many others. Early this year, Google announced additional steps to make the payment system even safer.
- Google is teaming up with three additional major US wireless carriers to lure more people to use its payment system.
- Google Wallet is also making the funds left in customer accounts known as Wallet Balance FDIC-insured (the Federal Deposit Insurance Corporation). This makes user money safer. It gives Google an advantage over rivals who are not providing a similar security for their users. FDIC protect up to $250,000 of funds in bank accounts and “non-banking institutions” such as Google Wallet.
- Google Wallet is also holding customer funds in FDIC-insured financial institutions such as banks making the money even safer.
These changes give Google Wallet an advantage over payment systems such as PayPal that do not offer FDIC-insurance protection. No protection discourages customers keeping any money in these accounts. One way to get the same benefits for non-Google Wallet users is to use money in their bank accounts to directly pay for services using their payment systems. Since bank deposits are FDIC-insured, non-Google Wallet customers can get the same benefit this way.