Google has just released a statement saying they will shut down their Google Wallet Card services from June 30. The card will stop processing any monetary add-ons from May 1, followed by the complete shutdown in June.
The prepaid card was introduced by Google in November 2013, to make in-store payments via Android easier. It allowed ATM withdrawals as well. However, this decision was taken when parent company Alphabet stepped in to drop the less profitable divisions. The company is said to have been losing money ever since 2013 with each Google Wallet Card transaction because of the high fees charged by the credit card companies. Reportedly, in June, the internal audit was being led by the former Morgan Stanley CFO under the recently hired Google CFO, Ruth Porat.
The prepaid card also faced a huge setback after Android Pay came into the picture in 2014, in response to Apple Pay wallet services. The split with Android ate into Google's wallet card business, thus limiting their options and rendering them a mere peer-to-peer payment facility, which acted as a catalyst in their closure.
But as per Google statement, they now "want to focus on making it easier than ever to send and receive money with the Google Wallet app." Till such time they come out with their upgrade, the existing Wallet Card customers have the option of switching to American Express and Simple - both with similar features - along with additional bonus points, thus capitalizing on Google's recent tie-up with them. However, no further comments were provided by the company apart from their blog post.
While it makes sense for Google Wallet Card to stop its services in the face of current circumstances, the future enhancements which Google says will "give [you] the best possible experience when paying friends and family" is something to look forward to.
Photo: Aranami Castillo | Flickr
