When Apple announced their mobile payment service, Apple Pay, the company mentioned that it would make a percentage of each sale that was made when someone used their service. Not too long after, Google announced Android Pay and it was speculated that Google would also be taking a percentage of each sale.
However, it didn’t turn out this way and Google confirmed they were not making money from the transactions made with Android Pay. As a business entity, Google has to make money with their new products and services and it’s a smart business decision to diversify revenue streams.
At Google I/O last week, the company announced they were partnering with a number of businesses to allow Google Assistant users to order and pay for various items. On stage they had a demonstration of this where someone placed an order at Panera Bread and then paid for it with Google Assistant all at once.
Google’s Senior Vice President of Ads and Commerce, Sridhar Ramaswamy recently confirmed that Google would be taking a slice of the transaction revenue (similar to an affiliate fee) for purchases made through its Google Assistant platform. This doesn’t directly mean that items purchased through Google Assistant will cost more, it’s just that Google will get a piece of the purchase amount. Google will also be experimenting with ads in Google Assistant as well.
We saw the recent promotion earlier this year where Google Home customers heard a commercial for the new Beauty and the Beast movie. Google said this was just an experiment and not a paid promotion, but it’s clear that Google wants to find ways to leverage the 100 million devices that now have access to Google Assistant. We’ll just have to wait and see if these experiments become too intrusive or off-putting to the average users.
Source: recode
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