Google announced that its Wallet product (not Android Pay, that’s different) will now allow direct bank transfers from peer-to-peer (P2P) transactions, as opposed to storing up cash in an app-specific pocket and then manually sending it to the bank.
The streamlined service will allow users faster access to their money—most P2P payments apps already pay directly from your bank account or credit card, unless you have some money stored up in the app. They aren’t getting rid of the in-app wallet option. The speed of the transfer depends entirely upon the bank of the user.
With the launch of Android Pay, which is used for in-app purchases and business to consumer transactions using RFID point-of-sale systems, Google Wallet pivoted to P2P.
P2P payments options have gained in popularity in recent years, with companies like Venmo, Square Cash and social networks Facebook and Snapchat filling up the space.
Wallets have made inroads into the American consumer set largely through the convenience of their loyalty programs—a mobile wallet can hold a close-to infinite number of offers and coupons from different companies. P2P payments have been banking on the sector of the market that participates in group activities—roommates can pay each other rent, friends can pay each other for dinner, or a cab, or whatever they need to.
In an increasingly crowded space, Google's option to remove a barrier between a user and their money is a smart move.