Google Pay app has joined hands with Citigroup Inc and a small credit union at Stanford University, to offer personal checking accounts facility on its app from next year.
The project, comes a time when competitors such Facebook Inc and Apple Inc are broadening their reach in consumer finance, a popular segment that ranges from digital payment apps to bank accounts, brokerage accounts and loans,.
U.S. regulators and lawmakers have expressed their concern over the low maintenance of data privacy records by these companies. The scrutiny most recently highlighted Facebook’s partners to step-out from plans to support the launch of a digital currency.
Google said that in initial discussion with the regulators, though it did not mention which ones, about compliance issues related to the new checking accounts.
Despite being behind its Indian rivals, the Google Pay app’s popularity in India has overpowered its usage in the United States and other countries, where it can be used for cashless payments in stores and money transfers.