Google is rolling out its own mobile payment service named Android Pay in the US as a response to its rivals Apple and Samsung. The new payment app will allow Android smartphone owners to use it as an electronic wallet.
Android Pay lets people buy goods at retail stores by tapping their phones against a store's payment terminal. The user's debit or credit card on file then gets charged. The new payment service is compatible with such bank cards as Discover, Visa, MasterCard, and American Express.
Nowadays, more retailers have equipment capable of accepting mobile payments. So people can use this service at 1 million stores and restaurants around the US. However, Android Pay is available only on smartphones of at least the KitKat version of Android, which came out in 2013.
Recently, major global companies have entered fierce competition for a bigger stake in the developing market of mobile operations.
Experts from the Gartner think tank estimated that mobile payment transaction value surpassed $235 billion in 2014. They foresee the market worth $720 billion with more than 450 million users by 2017.
Importantly, tech giant Google reported better-than-expected earnings for Q2, as it recorded double-digit growth in revenues. The company notes that growing demand for Google products accounts for such upbeat results.
"We are focused every day on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation," Google said in a statement.
