Inspired by the Apple Pay feature, the Android Pay option will be available to users for free and therefore may not be as lucrative or tempting as the former, as Google has said that it will not seek  a cut from the transactions processed.

According to Techno Buffalo, Android Pay, the new option being developed by Google, will be available to users without levying any charge on them. Since Google has refused to take a cut on the payments and transactions being processed through this medium, users will not have to pay to avail the facility. This is quite the opposite of the format being followed by Apple pay, where Apple is charging the customers and taking a cut on every transaction being processed. Another report on Hot Apple News also said that this factor would differentiate Google's service from Apple.

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Google's decision to avoid taking a payment cut for every transaction came as a result of Visa Inc. and Mastercard Inc. standardized the Tokenization process which was a mandatory step before making any payment. Due to this standardization, the transactions are more secure and users don't have to pay extra for this security.

Visa and Mastercard are the dominant payment networks and this announcement from their end ensures that users are not charged with unnecessary payment fees. Google will be relying on these payment gateways for the successful operations of its payment feature.

On the other hand, Apple has also introduced its own tokenization process that guarantees the security of the transactions accomplished through the Apple Pay option; however, Apple has negotiated its fees with credit card companies as well as banks and is accordingly levying a decent charge on its customers.

As of now, the company is taking a 0.15 percent for all purchases done through credit cards while a debit card purchase earns them a 0.5 percent commission. With Google negotiating the deal with Visa, there are no chances of it to earn through the transactions. As of now, the search engine giant has to look for other ways to monetize its new platform.

It is reportedly expected that this will lead to more companies adopting Google pay as a preferred medium. 

TagsApple News, Tech News, tech update, google pay, MasterCard, visa, tokenization