Both the Apple Pay and the new Google’s payment service Android Pay may be near-identical refections of each other in terms of primary function, but the major difference that may give Google’s new mobile payment solution an edge is, obviously, related to money. Using a combination of search giant’s new integration with a number of stores, payment processors, and indeed your existing Debit/Credit cards etc.
Android Pay vs Apple Pay. Where the Google’s Android Pay system has a way for you to pay for things with your phone, using at wireless terminals with NFC. Apple Pay for credit card transatctions gets 0.15% of the value, and for debit card based purchases, it is a full 0.5%. Which the numbers do not look very big, but in terms of card-based transaction fees, they are huge money.
Nevertheless, Android Pay will collect no such share of revenue generated through transactions fees. Thanks to that part, to Visa and MasterCard opening up their standardized tokenization security features, making them free.
What is Tokenization? This is a method that swaps card and transaction data with unique sets of numbers that validate the purchase, while the merchants never get the card data, and no directly sensitive information is transmitted, or severely curtaling, the risk of online theft. Since the Visa and MasterCard rule the credit/debit card transaction landscape, which could even force Apple to negotiate terms again if the Apple Pay is to remain a visible payment option after current agreements are up for renewal in a couple years.
Point to be noted and that is no-fee agreements with Google was not necessary by choice, no business likes to leave money on the table, but the new tokenization rules left Android Pay with no bargain to negotiate any kind of fees.
This may prove to work with Google’s agenda when it pushes for wider acceptance of Android pay as it expands to other markets worldwide, aka globally.