Google vs Facebook Round 1: Pony Express To Compete with Facebook Messenger Payments

Google has been working on a new Gmail service that will allow people to send and receive payments. The move is part of the company's ongoing efforts to expand its sources of income.

The service has been tentatively called the Pony Express with launching date sometime around this fourth quarter of the year. Information comes from Re/code claiming they have obtained a long document discussing the new service. The document further discusses Google's brewing partnerships with companies mailing bills out including insurance firms, utilities and telecoms. It was not clarified whether there would be service providers in the picture.

There is a huge potential on the Pony Express considering that Google can lure in a kind of financial data that can allow it to venture to new businesses. For instance, payment history and credit card bills of users can be useful in exploring sectors like lending or personal finance. More importantly, the tech giant can also use such data to tailor the nature of advertisements including their targeted individuals.

However, despite the data and business opportunities from Pony Express, clear distinctions on direct revenues from the service have not been established. Google may have to be more specific in defining how it will utilize the service fully to its potential to generate direct income. If Google pushes through with it then it will compete with Facebook’s plans to let users send and receive payments through its Messenger app.

There are several reasons why such services can mature and intensify company potentials. Daily Tech notes: The new development in the retail payments space has been the arrival of tightly integrated solutions on platforms with hundreds of millions of customers, a development which has raised public awareness of this previously overlooked emerging technology. Some industry resistance remains, but it's fast becoming apparent that trying to hold back digital payments is like trying to fight the tide -- you will lose."

To report problems or leave feedback on this article, email: p.silva@ibtimes.com.au.