Alphabet Decides To Shut Down Google Wallet Debit Card

Alphabet Decides To Shut Down Google Wallet Debit Card
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Google will soon be ending support to its Wallet Card. On Thursday, the tech firm announced that starting June 30, it will no longer support its prepaid debit card. Google’s Wallet Card was launched in November 2013, and it allowed users to pay for items bought in person and online at any of the retailers supporting MasterCard. The card even allowed users to withdraw money from ATMs.

Google suggests replacements

In a blog post informing Wallet Card users about its decision, the search giant said it wants “to focus on making it easier than ever to send and receive money with the Google Wallet app.” Users who have unactivated Wallet Cards can still activate them and use them until the cutoff date.

Though the Wallet mobile app still exists, one will not be able to add more money to the account using a debit card or bank account. The money you receive will be added to any existing balance, and that amount can be used to pay friends or be cashed out.

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Google also suggests a replacement, saying, “Both American Express and Simple offer debit accounts with similar features, including a card. Plus, we’ve teamed up with them so that Wallet Card users will get an added bonus after signing up.”

Android Pay in focus

Google’s decision to end its Wallet card comes amid the growing focus of parent company Alphabet on limiting the less profitable divisions. In May 2015, the tech giant hired Ruth Porat as chief financial officer, and in July, The WSJ claimed the former Morgan Stanley CFO is carrying out an internal audit to cut the company’s non-revenue generating businesses.

In 2013, it was reported that Google Wallet was losing money on each transaction owing to the high fees charged by credit card companies. Removing all the features related to Google Wallet does make sense as Google’s new platform for mobile in-store and in-app purchases, Android Pay, is now in focus.

On Thursday, Alphabet shares closed down 0.715 at $762.90. Year to date, the stock is down by over 3%, while in the last year, it is up by almost 37%.

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