August 28, 2013
Sending money over email is not a new feature. Long ago, PayPal introduced us to this concept and is a popular service even today with over millions of users transferring money through PayPal.
In a move that could give Paypal and Dwolla sleepless nights, Google has come up with a feature where a user could send money over email by just attaching it. The receiver may or may not be using Gmail to accept money. The receiver will have to log in to Google Wallet to receive money (deposit to a bank account) or pay for goods and services which accept transactions over Google Wallet. To send money all a user needs to do is to enter credit card or debit card details through Google Wallet log in to Gmail account, compose an email to a receiver attach money and send it.
Money transfer through Gmail is currently limited to US users only and is an invitation only feature. This feature is also restricted to desktop users as Gmail on the Android or iOS enabled phones lacks such feature.
Source: Android Police
Sending money through Gmail is currently free for a limited time and is restricted to desktop users. Post promotional period, senders will be charged 2.9% fee per transaction or a minimum of 30 cents.
Early adopters and the interest mongers have raised security based questions over such feature. Our research led us to find out that the user’s bank or card details are encrypted and are stored in a remote secure server and are not shared with any merchants.
LTP View: Sending money through email always had great potential because of ease of use. With Google the advantage is a huge customer base doing that with ease i.e. as easy as logging into your Gmail account, compose , attach and send. It has the potential to attract and retain users because it would not only target remote transactions but could very well become popular for proximity merchant transactions?
There could be a slight problem with receiving the money. Most of the carriers like T-Mobile, Verifone & AT&T have blocked Google Wallet on their phone service in a move to promote ISIS. This could mean that to receive money you’ll have to log in to Google Wallet application from your desktop to withdraw or shop online?