Alphabet Inc. (NASDAQ:GOOGL) is vigorously seizing growth opportunities within the global digital wallet market by introducing new features to the Google Wallet app. According to The Business Research Company, the digital wallet market is projected to reach $47.7 billion in 2024 and surge to $97.54 billion by 2033, with a compound annual growth rate (CAGR) of 19.6% between 2024 and 2033.
In its latest move, the company has unveiled the “Automatically add linked passes” feature for Google Wallet. This new addition resides within the “Passes” sub-section of Google Wallet settings on Android, enabling providers to automatically include event tickets, promotions, and offers to existing passes.
Moreover, the Auto Linked Passes feature empowers providers to dispatch additional passes to users with existing passes in their Google Wallet and pre-link passes to primary passes, potentially garnering significant traction among Android users.
Focus on Google Wallet
In addition to the Auto Linked Passes feature, Google recently introduced the “Verification settings” feature in Google Wallet for Android, granting users the option to decide whether to verify their identity when using payment methods and passes. This enhancement leads to a “Transit payments” option, facilitating user identity verification before completing transactions with credit or debit cards.
Alphabet has also announced updates to Google Wallet to support open-loop payment systems, offering a dedicated page for recent activity and ride history, showcasing saved fare caps, connected payment methods, and network-specific offerings.
Furthermore, the company has updated its Wallet app for Wear OS, enabling users to access their loyalty cards seamlessly. With this update, Google Wallet on Wear OS now supports all loyalty cards stored on phones or Google Accounts, appearing alongside payment methods. Users can conveniently tap on a QR or barcode to view details, scroll for more information, and utilize shortcuts like “Open on phone” or “Delete pass” on their smartwatches.
These endeavors are poised to strengthen Alphabet’s Android offerings and bolster its Google Services segment, which remains a key growth driver for the company. Over the past year, Alphabet’s shares have surged by 43.3%, surpassing the growth of the Zacks Computer & Technology sector, which stood at 43.1%.
The strengthening Google Services segment is expected to contribute to Alphabet’s overall financial performance in the foreseeable future, with the Zacks Consensus Estimate for 2024 total revenues indicating a year-over-year growth of 13.2%.
Facing Competitive Landscape
Alphabet’s enhanced Google Wallet efforts position it well to compete with major players such as Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), both striving to expand their footprint in the flourishing digital wallet arena.
Microsoft’s addition of a cryptocurrency wallet to its Edge Wallet is notable, offering real-time updates on cryptocurrency values and transaction logging for effective monitoring. The Microsoft Wallet app securely stores card numbers along with expiry dates and CVV codes, ensuring the protection of payment information during shopping or payment gateways.
Meanwhile, Apple is capitalizing on the momentum of Apple Wallet with the integration of new features. Notably, Apple Pay orders can now be attached to receipts as PDF or image files, enabling customers to track payments within the Wallet app and through confirmation emails.
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