After introducing its mobile payment service, Apple Pay, the company said that it would be a certain percentage of each sale that was created when someone used its service. Not too long after that, Google also launched Android Pay to compete with Apple Pay with the expectation of taking a percentage of each sale.
However, Google has recently announced that they were not able to make money with Android Pay. As a business tool, Google needs to create money with its products and services and a smart business decision will diversify revenue streams. At Google I/O event last week, Google announced that the company was partnering with a set of businesses when allowing Google Assistant users to order and pay for other items. In addition, they made a demonstration of Android Pay for ordering at Panera Bread and then paid for it with Google Assistant all at once.
Sridhar Ramaswamy, Senior Vice President of Ads and Commerce of Google, has recently confirmed that Google would be taking a part of the transaction revenue, which is similar to an affiliate fee for purchases through its Google Assistant platform. However, that doesn’t mean that items purchased through Google Assistant will cost higher, instead Google will get the money from a piece of the purchase amount. Google is also planning to bring the ads into Google Assistant.
Earlier this year, there was the recent promotion with a commercial of Google for the new Beauty and the Beast movie. Although according to Google’s explanation, this is only an experiment and not a paid promotion, it is quite clear that Google are finding ways to bring it onto the 100 million devices that have currently access to Google Assistant. We’ll wait and see if these experiments get too intrusive to the average users.