Alphabet Inc (NASDAQ:GOOGL) has announced strategic partnerships with Mastercard Inc (NYSE:MA) and Visa Inc (NYSE:V) as part of a plan to expand its mobile payment platform, Android Pay.
According to a report from Alphabet, Android Pay users who shopping online using their handsets will now find it easier to make payments in thousands of websites. They can use Android Pay to make their purchases as long as a website accepts Mastercard and Visa cards. The move will significantly support online shops and will lead to convenience for both merchants and shoppers.
The partnership will also be advantageous for Visa and MasterCard because it will present the two with a stronger foothold in the rapidly developing mobile payment industry. Card companies have been facing competition from all sides by payment services such as PayPal from Paypal Holdings Inc (NASDAQ:PYPL) and Apple Pay from Apple Inc. (NASDAQ:AAPL). The latter has particularly been one of the biggest competitors for Android Pay.
Google hopes that the partnership will also strengthen its position in the mobile payment market. The company also pointed out that merchants who have already enabled their Masterpass and Visa checkouts will not have to make any changes once Android Pay Support is activated. Their MasterCard and Visa buttons will be updated automatically. Customers who want to use the mobile service to make payments will have to link their cards with the Android Pay application.
The partnership is expected to improve online checkout, making it easier for customers to shop online in the hope that it will also encourage more online retail. Google is the latest company to strengthen its relationship with MasterCard and Visa. PayPal previously did the same as part of its plan to capitalize on sales in physical stores. As for Google’s new move, it plans to update the Android Pay service to support Masterpass and Visa Checkout. The integration will begin in the US but it will smoothly be rolled out in other regions.
Alphabet stock closed the latest trading session at $835.74.