Google Pay helps customers maximize credit card rewards and removes checkout friction

The news: Google Pay rolled out three new checkout features, per a press release.

Credit card rewards highlight.

• When checking out on Chrome desktop, Google Pay will show consumers their cards’ rewards offerings in the autofill drop-down so they can maximize their rewards.
• The feature will be available to American Express and Capital One cardholders before expanding to other cards.

Why it matters: Credit card rewards often dictate which card accounts consumers open. But it can be difficult for consumers with multiple cards to keep track of each rewards scheme.

Fintechs and digital wallets like Google Pay are making it easier than ever for consumers to maximize rewards. That improves customer satisfaction but could become a problem for issuers: They rely on a certain amount of rewards breakage and sub-optimal use to finance these expensive programs.

Expanded BNPL.

• Affirm and Zip’s buy now, pay later (BNPL) options will be available at more merchant sites and Android apps across the US following a December pilot.
• Consumers can link their BNPL accounts to Google Pay or sign up with either provider within Google Pay’s checkout.

How it can help: Not offering a customer’s preferred payment method at checkout can hurt conversion rates.

And BNPL is becoming a checkout necessity, especially among Gen Z shoppers. If BNPL was unavailable for a given purchase, 27% of Gen Zers wouldn’t buy the item, per a survey from PYMNTS and Sezzle.

Biometric verification.

• When filling in card details through autofill on Chrome or Android, consumers can verify their identity using a fingerprint, face scan, or their lock screen passcode. This replaces the need to enter the card’s security code, which consumers might not have memorized.
• Consumers can also require unlocking their device before Google Pay reveals their card details.

Why this can work: These biometric-based security measures remove friction at checkout, letting customers easily verify their identity while keeping their information secure.

• Security and control was the top-valued category in our US Cash-Back Credit Card Emerging Features Benchmark.
• Consumers place high value on the peace of mind these features can bring. And they’re already using these biometric-based verification options on their phones, which can help them feel more comfortable using them at checkout.

The bigger picture: Google Pay is focusing on improving the payments experience through Chrome autofill and in the Play store after shutting down the Google Pay app to consolidate its most popular features in Google Wallet.

These new features will help it push this strategy by removing friction points at checkout and maximizing the consumer experience.