Although Google is a bit late to the digital wallet party, it's been long-rumored that Google has had an interest in buying Square
Google is partnering with Citi
Google's checking and savings account come with some advantages including no monthly fees, overdraft charges, or minimum balance requirements. Users can also receive a physical debit card through Mastercard
Stock Price Impact
In the short-term, this news won't affect Google's stock price. However, in the long-run, this could be a meaningful contributor to the company's financials. Through its software and free checking accounts, Google should be able to amass deposits and users. This follows Google's path with many of its products, where it offers users a bunch of features for fees. Once, it reaches a critical mass, it can monetize its userbase and offer more higher-value services, especially as it applies machine learning to users' budgets, spending, and savings.
Over the past week, Google's stock has broken out to new highs and been consolidating. It's another winner of a vaccine. Travel and small business make up a decent chunk of its revenue base, so as these sectors return to normal in the coming months, Google should benefit.