Google Wallet rolls out features for kids to compete with Apple

The news: Google Wallet launched a feature for kids and teens to use the wallet for in-store purchases via its Family Link app, per a blog post.

• Parents can add cards and get email notifications when the child makes a transaction.
• Parents will also be able to track recent purchases, remove payment cards, and turn off access to passes.

Children will get access to Google Wallet’s supported passes like event tickets and library cards. But they will not be able to use the wallet for online purchases.

The feature will roll out to Android users in the US, the UK, Australia, Spain, and Poland in the coming weeks.

The bigger picture: Google Wallet previously added tap to pay support for its kid-focused Fitbit Ace LTE through partnerships with Greenlight and Acorns. And it’s not the only mobile wallet to launch kid- and teen-oriented payment features.

• Apple Cash Family lets parents load money into their children’s accounts and limit who they can send money to. Apple Card also has a family feature.
• Cash App lets teens make P2P payments and apply for its debit card with parental supervision.
• And Venmo’s Teen Account comes with a linked debit card.

Why it matters: Feature innovation can help Google Wallet better compete against—or in this case, catch up to—Apple Wallet, which boasts a clear lead in terms of mobile wallet users.

• We forecast US Google Wallet users will total 50.94 million this year, accounting for almost 30% of all mobile wallet users.
• Apple Wallet users, meanwhile, will total 83.45 million in 2025—accounting for about half of all mobile wallet users.

That’s why Google Wallet also recently started supporting more types of digital passes, virtual cards, and BNPL options.

Feature innovation will be a crucial differentiator if Google decides to compete for users in Apple’s home turf: the iPhone.

Our take: Launching this account for kids can help Google Wallet grow its user base in the long term by bringing in consumers early in their financial lives.

Building brand loyalty with them now will help Google Wallet steal share from Apple down the road.