Google Won't Charge Android Pay Transaction Fees: Report

Advertisement
By NDTV Correspondent | Updated: 8 June 2015 09:35 IST
Google Won't Charge Android Pay Transaction Fees: Report
Google's new mobile phone payment service, Android Pay, will not garner any transaction fees from credit card companies, which may put pressure on competitor Apple to drop or lower its charges, the Wall Street Journal reported.

Apple Pay, which launched last year, reached deals with big banks and other credit card issuers to receive 0.15 percent of the value of each credit card transaction, the journal said on Friday. Apple collects a half-cent per purchase on bank debit cards, it said.

Google's service will not receive any fees for the transactions, the newspaper reported, citing unidentified people familiar with the situation. It said Visa and Mastercard have made their "tokenisation" card-security service free, which prevents payments services from charging fees to issuers.

"There is one agreement with Visa and the banks can have confidence that there are no pass-through fees," Visa President Ryan McInerney told the newspaper.

The Wall Street Journal said the rules may prompt changes in Apple's mobile phone payment deal with banks. It said some banks are not happy about sharing fees and could try to use Google's arrangement to effect changes in Apple's deals.

Google had unveiled Android Pay at its Google I/O 2015 developers' conference in late May. The service is aimed at ramping up the Mountain View giant's challenge to Apple in mobile payments.

Android Pay brings together mobile carriers, payment networks, banks and retailers to allow smartphone users to use their handsets instead of payment cards.

Advertisement

Google engineering vice president Dave Burke said Android Pay would work in more than 700,000 US retail outlets that accept contactless payments.

"We are at the start of an exciting journey, we are working closely with payment networks, banks and developers," he said.

Advertisement

Written with agency inputs

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Advertisement

Related Stories

Popular Mobile Brands
  1. Amazon Prime Day Sale: Get Up to 75 Percent Off on Computer Accessories
  2. Amazon Prime Day Sale Highlights: Top Deals on Phones, Laptops and More
  1. Meteorite From Outer Solar System Challenges Planet Formation Timeline in Early Solar System
  2. NASA’s Hubble and Webb Discover Bursting Star Formation in Small Magellanic Cloud
  3. New Interstellar Object 3I/ATLAS Could Reveal Secrets of Distant Worlds
  4. Companion Now Streaming on JioHotstar: What You Need to Know About American Sci-Fi Thriller Movie
  5. Heart Eyes Now Available for Rent on Amazon Prime Video: What You Need to Know
  6. Scientists Recreate Cosmic Ray Physics Using Cold Atom in New Laboratory Study
  7. Scientists Say Dark Matter Could Turn Failed Stars Into ‘Dark Dwarfs’
  8. New Gel-Based Robotic Skin Feels Touch, Heat, and Damage Like Human Flesh
  9. Flipkart GOAT Sale 2025 Begins on July 12 for All Customers Alongside Amazon Prime Day Sale
  10. Samsung Galaxy S26 Ultra Tipped to Get 200-Megapixel Sony Camera Sensor
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.