Google Mexico announced the launch of Google Wallet, allowing the company to capitalize on the growing penetration of smartphones in the country, which added 10 million new smartphone users in just the last three years. Through this platform, users will be able to make contactless payments from their Android and Wear OS devices. In addition, users will be able to store and use other items such as gift cards, transportation passes and tickets to events.
Google’s recent launch is part of the company’s commitment to provide access to technology and benefits to Mexicans, promote greater financial inclusion and generate a fertile ground for creating new businesses. “It fills me with pride and happiness because it has been a journey of more than two years to reach this achievement. We have had good news in the last few weeks between this launch and the relationships with the Fintechs. It shows how we are trying to foster Mexico’s economy and leverage where we can make a difference,” said Julian Coulter, Country Director of Mexico, Google, during the launch.
The digitalization of Mexico’s economy has been slow. According to the National Survey of Financial Inclusion, cash continues to be the top payment method within the country, with nine out of 10 Mexicans using it for purchases of less than MX$500 (US$25.9). Reducing the use of cash can increase security and reduce tax evasion, organized crime and fraudulent transactions. In addition, economic digitalization can lead to a growth of 3 percentage points in the GDP of emerging economies.
Google chose this moment to launch the Google Wallet given that smartphone use is increasing across the country, with Android as the most popular platform. The wallet has potential to help Mexico move from cash to a digital economy, according to the Google team.
“It’s not just a wallet. It is Google’s wallet,” said Carmen Quintanilla, Marketing Manager, Google LATAM. With Google Wallet, people will be able to make contactless payments from their phones from credit and debit cards. Making digital payments accessible requires working with the financial ecosystem and different partners. For the launch of Google Wallet in this first stage, Google is collaborating with the following companies: Aeroméxico, Banregio, Banorte, Cinemex. Hey Banco, Inbursa, Mastercard, Nu México, Proscai (which owns clients such as Aldo Conti, Aditivo, Juguetibici and Promoda), Visa, Volaris, BBVA Mexico, RappiCard, Santander and Viva Aerobus.
Google expects that the launch of the wallet will reduce volatility in 2023 by simplifying financial transactions. “The ease of payment execution is going to increase spending. Many offers and promotions are lost because customers do not know about them. Having these offers in the wallet could help economize in a more complicated scenario,” Armando Betancourt, Financial Technology Advisor at Google, told MBN.