Google introduced some killer new features to drive Wallet user growth 🚀; American Express jumps into the generative AI frenzy 🤖; SEC sues Binance and CEO Changpeng Zhao 🤯

FinTech is Eating the World, 5 June

Hey Everyone,

Happy Monday! I hope you managed to recharge over the weekend because we’re starting a new week with a bang 💣 Today we’re looking at Google that introduced some killer new features to drive Wallet user growth (what are they & why it makes sense), AmEx that jumps into the generative AI frenzy (the hype is real + a bonus read on the world’s first banking-specific LLM & why it’s a game-changer), and SEC that just sued Binance and CEO Changpeng Zhao (is this FTX all over again?). Let’s jump straight into the spicy stuff 🌶

Google introduced some killer new features to drive Wallet user growth 🚀

The news 🗞 Tech titan Google GOOGL 0.00%↑ recently announced five new features for its Wallet, according to a company blog post.

These features aim to address consumer demands and resolve existing pain points in the digital wallet space. Let’s take a look.

More on this 👉 Here's what they are all about:

1. Passes from images: customers can now take a photo of any pass containing a barcode or QR code, such as gym memberships or transit tickets, and create a digital version in their Wallet.

2. Private document storage: Google enables customers to label cards as private, requiring additional verification for added security. The partnership with Humana and the UK's National Health Service (NHS) allows for the digitization of insurance information.

3. ID card storage: users in Maryland can save their ID cards and use them at TSA checkpoints, with support for IDs from Arizona, Colorado, and Georgia to follow.

4. Message integration: travel check-ins, dining reservations, and other notifications in messaging apps can be sent directly to Wallet, initially through partnerships with Vietnam Airlines, Renfe (Spain-based railway operator), and reservation service TagMe.

5. Corporate ID support: Google plans to add support for corporate IDs later this year.

The value add 💸 At the core, all these new features aim to consolidate payments and passes into one product, reducing fragmentation within the digital wallet ecosystem. And by digitizing more documents and offering convenient features, Google Wallet now becomes much more valuable and user-friendly.

✈️ THE TAKEAWAY

What’s next? 🤔 In short, this move should attract new users who may not have adopted Wallet for payments initially but could become proximity payment users, hence ultimately driving Google Pay's user growth. Besides, it enhances user engagement by providing reasons to return to Wallet regularly, forming habits that translate into increased spending. Finally, we can remember that store loyalty and payment consolidation, along with ease of use, are the most valued features in digital wallets, as per McKinsey. With that in mind, it should only boost Google Pay's growth that’s expected to increase by 8.5% this year, surpassing 33.8M users in the US alone and strengthening its position against competitors like Samsung Pay.