Which payment app is better

Google Pay: Pay with your Android smartphone

How does Google Pay work?

Google Pay is a payment service that you can use in retail shops at checkouts as well as for payments in apps or online shops. The prerequisite is that the respective merchant accepts Google Pay as a payment method. To use Google Pay to make payments, you need three things:

  • A Android smartphone with NFC and at least Android 4.4 ("KitKat") - that means: an Android smartphone belonging to a newer generation. Payments with Android smartwatch or tablets are also possible.
  • The Google Pay app.
  • A fitting Credit card - For example a Mastercard or Visa card from a participating bank, or a supported payment system such as PayPal.

Setup is quick: when you start the Google Pay app for the first time, you will be asked to add your credit card number to Google Pay or to select a card that has already been saved.

Payment then works in the same way as with a credit card with a contactless payment function via the NFC interface. You simply say in the store that you want to make contactless payments and hold your mobile phone to the reader. And amounts up to 25 euros are paid without any further ado.

Only for larger amounts do you have to unlock the display of your smartphone first - a safety precaution so that a thief cannot buy as much as he likes.

Google Pay works like a digital wallet. This means that you can put many different cards there. Credit and bonus cards can also be transferred there.

What about data protection?

The Google Pay app is subject to the general data protection provisions of Google. In principle, it is then possible to evaluate the data from the payment.

This data is worth real money for the company, as it provides information about what someone is buying where, when and at what price. In this context, for example, the following can also be considered:

  • Date and time of purchase
  • Dealer location and dealer name
  • the description of the goods

On this basis, advertisers can tailor advertising and offer conditions, such as prices and discounts, precisely to the users.

The data from Google Pay can also be merged with other information that arises when using other Google services. In this way, the group can gain a comprehensive picture of you and your consumption habits.

So take a look at the data protection provisions of Google and the settings of the apps to get an idea of ​​how the data is used.

Advantages and disadvantages of Google Pay

At first glance, it appears as if Google Pay's service is solving a problem that is not immediately obvious for the German market. Because contactless payment is also possible with the card. And so far only very few banks have supported this service with their cards.

Holders of a Visa or Mastercard from another credit institution are currently excluded. That means: If you are a Sparkasse customer, for example - the banking group with the most private customers in Germany - you could not use Google Pay at all. Instead, you have to rely on your bank's app. In addition, not only the retailers but also the users would have to pull along and accept the offer. So far, however, it doesn't look like it: three out of four purchases are still paid in cash.