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SA banks embrace Google Wallet in contactless payment drive

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 24 Aug 2022

South African banks have embraced the launch of Google Wallet in the country, as they look to expand their contactless payment solutions.

This, after internet search giant Google yesterday launched its Google Wallet and Google Pay services in South Africa.

With the launch, cardholders of FNB, Discovery Bank, Investec, Standard Bank, Absa and Nedbank can add their cards to Google Wallet and pay via their Android phones or Wear OS devices where contactless payments are accepted.

The arrival of the Google Wallet solution adds to other contactless payment methods local banks have adopted, including Apple Pay, Samsung Pay, Fitbit Pay and Garmin Pay.

The Google Pay app works alongside Google Wallet. Users can use Google Wallet to store their everyday essentials, such as cards, tickets, passes, keys and IDs, and the Google Pay app to manage their money and finances.

Local banks have seen a rapid adoption of contactless and digital payment solutions since the onset of the COVID-19 pandemic.

Secure transactions

Responding to the launch of Google Wallet, FNB and RMB Private Bank say customers with Android-powered smartphones, tablets, or watches can now also use Google Wallet for safer and more secure contactless payments.

Retail customers can now link their physical and virtual FNB debit, fusion, or credit cards to Google Wallet, while commercial clients can link their physical and virtual debit cards.

FNB recommends customers load their existing virtual card or create a new one for free to use with the Google Wallet app, which can be downloaded from the Play Store, providing them with more ways to make contactless and digital payments.

Raj Makanjee, FNB Retail CEO, says: “The addition of Google Wallet as one of our supported third-party digital wallets is consistent with our mission to provide customers with a wide variety of safer and more convenient online and in-person payment options.

“This is in addition to Apple Pay, Samsung Pay, Fitbit Pay and Garmin Pay, as well as our own FNB Tap to Pay and Scan to Pay. We have millions of customers using Android-powered devices, so we are pleased to provide our customers with even more choice and convenience.”

Earlier this year, FNB revealed that monthly payments via FNB Pay-enabled digital wallets surpassed R1 billion, as customers increasingly prefer making contactless payments via their smart devices.

Furthermore, according to the bank, the use of FNB Pay-supported digital wallets, which can be linked to the FNB Virtual Card, has increased by more than 800% year-on-year in volume.

Absa has also expanded its digital payments ecosystem with Google Wallet, amid rapidly-growing customer demand for convenient, innovative and secure digital payment options, says the big-four bank.

“Following record increases in contactless card volumes last year, with debit and credit card usage surging by 231% and transaction volumes rising by 180%, customer demand for reliable contactless wallet payment and e-commerce options are higher than ever before,” says Tshipi Alexander, head of card issuing at Absa Everyday Banking.

Harnessing digital power

Nelisa Zulu, head of card payments at Standard Bank South Africa, says the financial institution is excited about the Google Wallet capability now being available to its customers, who are moving away from traditional ways of doing banking and adopting new, digitised methods with much enthusiasm.

“It’s not difficult to see why. Payment wallets like Google Wallet have become increasingly popular simply because it makes the process of paying with your card much quicker – there’s no need to carry physical cash or a bank card.

“Customers are also embracing virtual payment methods for the security they provide, especially when transacting online, which so many more people are engaging in post the arrival of COVID-19 and associated lockdowns.”

Zulu notes the deployment of Google Wallet is in line with Standard Bank’s ambitions to fully digitise its operations and customer solutions.

“We strive to be at the forefront of new technology that will make the customer’s life safe – in the physical and virtual environment. We are armed with the type of payment methods that customers require in the current environment.”

According to Chipo Mushwana, Nedbank executive for emerging innovation, this offering further supports its “digital first, first in digital” ambition, and is another milestone in the bank’s execution of its payment innovation journey.

Mushwana adds that over the last 18 months, the South African market has shown a deep appreciation for contactless payments, as evidenced by the growth in volumes and value of purchases made using these methods.

“Nedbank’s innovation journey focuses on harnessing the full power of digital to deliver meaningful payment solutions that go beyond ordinary banking services, but empower clients of all types to transact easily on a day-to-day basis,” Mushwana says. “The addition of Google Pay to our contactless payment solutions gives Nedbank clients even more choice and convenience when it comes to making payments.”

Says Hylton Kallner, CEO of Discovery Bank: “We’re excited to announce Google Pay is here for all Discovery Bank clients, providing a fast, easy and safe way to pay with any Android phone or supported Wear OS device.

“Our launch of Google Pay is yet another step we’re taking towards delivering the most advanced payment and digital banking technologies in the country. Discovery Bank clients can now leave their wallets at home and still benefit from our bank’s unique features – such as earning Discovery Miles and market-leading rewards – wherever they go.”

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