Google Pay To Miss Boat On Lucrative Credit Card Transaction Fee Revenue

It's a horrible feeling, that one of regret when the realization strikes that we should have been more on top of things, quicker to get something done. I'm sure we've all been there, and while it can easily happen to any one of us, it can also happen to the biggest of companies -- Google being the latest example.

Had Google been quicker in finalizing the details of its Google Pay mobile payments service, it would have been able to enjoy nickel and diming the kings of nickel and diming: credit card companies Visa and MasterCard. In May, those companies updated the details to their respective services to prohibit companies from being able to charge them for transactions.

Because Apple had finalized its deals earlier, it stands to gain a 0.15% cut on credit card purchases made through Apple Pay, as well as half a cent for each debit card purchase. That might seem horribly low, but given the sheer number of prospective users, Apple stands to gain handsomely here, while Google will miss out.

As bad as this sounds for Google, though, there is one possible upside: because of these no-fee restrictions coming into place, more banks and credit card companies may suddenly see Google Pay as the more favorable option. In time, that could help make it the most successful option. Whatever happens, it will be interesting to watch it play out.