Internet giant Google has introduced debit card payment functionality in Brazil through Google Pay that allows users to use their smartphones to pay for anything, reported Reuters.
Due to higher fraud risk, e-commerce retailers in Brazil prefer credit card payments. Google believes that the new service will enable the company to deal with this issue.
Joao Felix, who manages Google Pay in Latin America, told Reuters that there are 60 million debit cardholders and 50 million credit card holders total in Brazil.
By supporting debit card payments, Google intends to capture higher share of the payment market in the country.
According to Felix, Google also aims to boost the usage of Android smartphones.
The internet giant will not collect any fees from retailers, card issuers as well as card processors for using its debit payment platform.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Initially, card issuers such as Banco Bradesco, Banco do Brasil and Itau Unibanco will allow clients to use the new Google Pay feature.
Additionally, card networks Mastercard, Visa and Elo and e-commerce platforms, including delivery apps Rappi and iFood will also be able to leverage the functionality.
Google Pay, formerly Pay with Google and Android Pay, makes use of Near Field Communication (NFC) to transmit card information and allows users to directly load their card details to their Google Pay wallets.
During the payment processing, Google Pay generates a virtual account number instead of sending credit or debit card details in order to address security concerns.