Alphabet’s Google (GOOGL) – Get Report said it expanded its Google Pay app to enable users to open back accounts, pay friends and manage budgets.
The updated application debuted Wednesday.
Alphabet partnered with Citi (C) – Get Report and Stanford Federal Credit Union to launch the mobile bank accounts with plans to add 11 new partner institutions in 2021.
“Along with our bank partners, we were looking to make banking more relevant for the mobile-first generation,” Caesar Sengupta, general manager of payments at Google, told CNBC Wednesday.
“It will help our partners make banking more approachable to that generation, and not only make it more relevant, but make it more fun.”
Google will have so-called Plex checking and savings accounts, which have no monthly fees, overdraft charges or minimum-balance requirements.
People who sign up for Google bank accounts can request a physical debit card, which will run on Mastercard’s (MA) – Get Report network.
The accounts are free to open and in-network ATM use is free.
The Mountain View, Calif., search, advertising and tech giant says Google Pay will never sell users’ data to third parties or share transaction histories with the rest of the company for targeting ads.
The timing of the announcement comes as big tech faces increased scrutiny from federal lawmakers.
In October, the Justice Department filed a lawsuit against Google alleging that the company has unlawfully maintained a monopoly in search by leveraging its platform to cut off competition from rivals.
Alphabet shares were down 0.8% to $1,747.71 in afternoon trading Wednesday.
Apple is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL? Learn more now.