Google has been in the spotlight amidst the ongoing transition in the tech industry. In May 2023, the company launched its Search Generative Experience (SGE). However, SGE enhances user experience, but monetizing it remains challenging for Google. While the discussion around that topic is unfinished, Google has announced a scheduled shutting down of its Google Pay app in the U.S.
Why must the pay app leave the scene in 2024? Here is what I found out.
Popularity and Usage
The growing popularity of Google Wallet in the U.S. is a key motivation for Google to choose the app over Google Pay.
As of September 2023, Google Pay had 25.5 million users across the U.S. ranking third among the most popular smartphone apps in the U.S. Nevertheless, Google revealed that Americans use Google Wallet five times more often than Google Pay. Google wants to capitalize on the users’ preferences to generate more revenue from a single app.
Simplicity and consolidation
Another reason Google is switching from Google Pay to Google Wallet is to simplify the payment process for users.
Google Wallet gives users quick access to digital items and forms of payment. It integrates more functions within a single app compared to Google Pay whose design is to allow users to pay easily for their online purchases.
Google said its wallet app simplifies payment while enabling users to utilize and store digital items like passes and cards.
Clarity in services
Google wants to make its services clear to users. With Google Wallet, it will eliminate the confusion inherent in having multiple apps performing similar tasks.
What’s next for Google Pay users outside the U.S.?
Google Pay has over 150 million subscribers worldwide. Google has set the app to cease operating in the U.S. on June 4, 2024. Already, Google Wallet has replaced Google Pay 60.
Chances are minimal that the company will change its mind. However, the shutdown will not affect users outside the U.S. Google has promised to keep the app active in India and Singapore.
