Google plans to offer current accounts to customers via Google Pay

Google's banking service will be offered in partnership with Citigroup

Google is planning to enter the banking market with the introduction of current accounts to customers that will be operated via its Google Pay app.

The service, which is expected to launch next year, will be offered in partnership with Citigroup and a credit union at Stanford University, according to the Wall Street Journal. It's not known, yet, whether the company plans to offer banking services outside of the US.

Google's most noticeable success in financial services has been in India, where Google Pay is used by nearly 67 million users each month

"We're exploring how we can partner with banks and credit unions in the US to offer smart checking accounts through Google Pay, helping their customers benefit from useful insights and budgeting tools, while keeping their money in an FDIC or NCUA-insured account," a Google spokesperson admitted.

The current account service will enable customers to use Google's analytic tools to their banking products, the company added.

The project, codenamed Cache, is the latest example of a big technology firm moving into consumer finance - a broad area encompassing bank accounts, brokerage accounts, digital payment apps, loans, and other services. Tech firms, including Facebook, Google, Amazon, and Apple, view financial services as a potential new source of services revenue and an opportunity to strengthen their ties with customers.

So far, Google's most noticeable success in financial services has been in India, where Google Pay is used by nearly 67 million users each month to digitally pay for Uber rides, groceries, and other transactions. Moving into financial services could also provide Google new information for their advertising business, helping it to track ads that actually lead to purchases.

Tech firms, including Facebook, Google, Amazon, and Apple, view financial services as a potential new source of services revenue

In June, Facebook proposed a new global cryptocurrency named Libra that it plans to launch in the first half of 2020 - despite opposition from authorities in the US and elsewhere, which led to the withdrawal of several key partners.

Nevertheless, the company has established a new subsidiary, called Calibra, to create financial services for Libra and to provide a digital wallet for users to save and spend the digital currency.

Amazon has been offering loans to small businesses since 2011. The company launched a credit card with JP Morgan Chase in 2017, and is currently working on plans to introduce checking accounts for customers.

Apple has also joined hands with Goldman Sachs to introduce a credit card for customers. The company launched its Apple Pay service in 2014, which has now become a preferred payment method for many iPhone customers.

Apple Pay is supported on the iPhone, iPad, Mac and Apple Watch, allowing users to make payments in person, through iOS apps, and on the web.

Last month, ride-hailing giant Uber also announced plans to launch a new division, called Uber Money, which will include a digital wallet and upgraded debit and credit cards.

The move aims to expand Uber's efforts to give its drivers access to a mobile bank account so they can get paid after each ride.