Google Pay Review: Thriving in the Crowded Digital Wallet Space

Bottom line: Google Pay is an excellent way to consolidate existing payment methods, including credit and debit cards.

At a glance

What is the Google Pay App and how does it work?

Google Pay is a contactless payment method that allows Android and iPhone users to make in-store, online, and in-app purchases. Best of all, purchases are secure thanks to the multiple layers of security built into the app.

Once available only on Android devices, Google Pay is now available for iPhone users.

What does Google Pay do?

Besides making purchases, Google Pay allows you to send and receive payments from other people. It also gives you plenty of room to store virtual credit cards, bank account information, debit cards, tickets, passes, loyalty cards, and IDs.

How to pay with Google Pay

As long as your bank account, credit cards, and debit cards support Google Pay, you can link the payment method to your Google Pay account. Google Pay is widely accepted in grocery stores, gas stations, restaurants, and anywhere contactless payments are accepted.

• To use Google Pay to pay a merchant, simply unlock your phone, hold the back near the payment terminal and follow the prompts on the phone.
• To use Google Pay in-app or on a website, look for the "Go Pay" or "Buy with Google Pay" logo and tap it. Again, follow the prompts to complete the purchase.
• If you want to use Google Pay to transfer money to someone, tap the "send" option, enter the recipient's email address or phone number, choose the amount you want to send, and confirm the transaction.
• Google Pay makes it easy to view your transaction history and manage payment sources by tapping the three lines in the top left corner and selecting "Payment Methods" or "Transactions."

Top perks

Accessible from just about anywhere

Google Pay is available on iOS and Android technology. It's also available via the web, using any browser. If you never know where you might be at any given time, the convenience of having Google Pay available from anywhere is not only convenient, but it can also keep your personal finances in order.

One-stop storage

Many of us have methods of payment strewn about the web. For example, a bank account number may be stored with a utility company, while our favorite online retailer has two or three of our credit card numbers. Google Pay makes it possible to consolidate all that financial information in one place. Users can also add gift and rewards cards.

Allows user to control data sharing

For anyone who's tired of giving their private information to websites that sell it to other companies, the fact that Google Pay allows users to opt out of data sharing is rather nice. That's not always the case with some of the other best payment apps out there.

Protects through the use of virtual card numbers

When a Google Pay user makes a purchase, their actual credit or debit card number never shows up anywhere. Instead, Google uses virtual card numbers in its place.

Can be locked remotely for extra security

Let's say someone steals your phone. Unless that person knows your PIN or can log in using your face or fingerprint, they won't be able to open Google Pay. While some users complain about having to go through the authentication process each time they use the app, it's there to protect your money. Further, Google Pay is connected to your Google account. That means that you can use the Find My Device feature and delete all data stored in the app.

What could be improved

No buyer protection

If you use Google Pay to make a purchase that doesn't work or never arrives, Google Pay won't advocate on your behalf. In other words, it won't make calls to the company or otherwise attempt to help you recoup your loss.

However, if you use a bank card to make the purchase, it's possible that your bank or credit card issuer will take over the case for you.

User could run into a surprise transaction fee

If you use a stored credit card to make a purchase, it's possible that the credit card company will impose a fee of up to 4% on the merchant when a card is linked to Google Pay. If the merchant charges its own transaction fee on top of that, you could be hit with a much higher total than expected.

Your best bet is to check with the credit card company before shopping to find out if such a fee exists. You can also avoid fees by using a linked checking account or debit card.

May be possible to earn more cash back through Rakuten

Google Pay partnered with Rakuten to offer app users the chance to earn cash back through specific merchants. It's possible that a person could earn more cash back by simply using the Rakuten app for cash back instead.

If you want an app that charges a lower debit fee for instant transfers: Venmo is a better option, with a fee of 1%. However, you'll want to stick with Google Pay if you want to integrate with other Google services.

If you want an app that offers its own credit card, debit card, or prepaid card: PayPal is your best bet. But you may want to stick with Google Pay if you're looking for a one-step payment method when you're out and about.

The only associated costs are any fees a user may incur for using a credit card to pay for a purchase (although it's possible a merchant will charge no fees), and the fee associated with transferring money from their Google Pay balance through a debit card.

Consumers who know what they're looking for in a payment app. They want a secure, easy to use app that protects their personal data.