Alphabet’s (GOOGL - Free Report) division, Google is expanding footprint in the online payment industry on the back of partnerships, which is evident from its latest move.
The company teamed up with eBay (EBAY - Free Report) to offer the online payment app called Google Pay as one of the payment options on eBay’s online shopping app.
From early April, customers of eBay will be able to use Google Pay to make payment for the purchased products.
This deal seems to be a win-win situation for these companies. Google Pay is likely to expand eBay’s online payment options, which will help it provide better shopping experience.
Further, this latest deal is likely to boost the adoption rate of Google Pay as eBay’s online shopping platform has a huge customer base.
Recent Deal to Aid Growth
This latest move of Google bodes well as it aggressively eyes expansion on the booming global digital payment market.
Apart from the recent deal, the search giant partnered with PayPal (PYPL) to allow PayPal’s account holders to make payments by adding their details to the Google Play account, without signing in.
Additionally, Google’s strengthening presence in international regions, especially in India remains a major positive.
All these endeavors are likely to help the company to penetrate the digital payment market, which is riding on growing popularity of digital wallet, and increasing use of Internet and smartphone.
Per Research and Markets, this particular market is anticipated to reach $7.6 trillion by 2024 by growing at a CAGR of 13.7% from 2019 to 2024.
Further, a Statista report shows that the market is expected to generate $4.14 trillion worth total transaction value in 2019, which is anticipated to reach $6.7 trillion by 2023 by witnessing a CAGR of 12.7% between 2019 and 2023.
The latest deal is likely to strengthen Google’s position against the likes of Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) and PayPal.
Last year, eBay collaborated with Apple to make Apple Pay available to eBay’s customers as a payment option on its shopping app. Hence, Google Pay on eBay intensifies the competition for Apple.
Further, Google is likely to give a tough competition to the e-commerce giant’s initiatives to boost the user base of Amazon Pay. Notably, Amazon is offering customer-friendly offers on its payment app via its online shopping platform.
Moreover, integration of Google Pay and Apple Pay into eBay’s shopping platform is making eBay less dependent on PayPal. This does not bode well for PayPal’s market position.
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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