Monday, October 8, 2012

Google Bank-Open for Business

Google, the search engine company that also happens to do 35 other things, is expanding its horizons once again with a new financial services division. Today the multi-billion dollar corporation launched a new credit business in the United Kingdom with plans to expand to other countries in the next few weeks.Its not the first time that that Google has offered credit to drive more AdWords investment-Its been running a pilot with 1400 businesses from a variety of industry in the U.S for a year from Kuru Footwear to ‘Get Bats Out’ bat removal—and their feedback was overwhelmingly positive. In a survey conducted after the pilot launched, 74% of respondents said they now use AdWords Business Credit as their primary form of AdWords payment.

Under this program Google will offer credit- between $200 and $10,000 -- to spend on Google's money-making AdWords program. Google will issue credit cards as part of the new financing program

In the UK, AdWords Business Credit will have a variable 11.9% APR Representative.
In the US, AdWords Business Credit will offer an APR as low as 8.99%*, the same rate as in the pilot.

 Neither card will have annual fees, and they will both have an ample credit limit for AdWords.

We’re teaming up with Barclaycard, part of the Barclays group, in the UK and Comenity Capital Bank in the US to issue the card. Both are MasterCard cards.

AdWords Business Credit can only be used for AdWords advertising purchases.

.The move comes just a few days after news emerged that Amazon was launching its own loan business. Though details are still unconfirmed since Amazon hasn't formally launched the program, Amazon Lending will provide capital to small business to stock up on inventory before the holiday seasons. Since Amazon takes a cut of all the sales through its website, helping small shops sell more goods makes great sense. "This is definitely cheaper than credit cards and faster and easier than banks, so may fill a big hole for sellers."

Don't expect to see Google and Amazon ATMs on the street corner any time soon, though. For now, both of the companies' programs will focus on commercial loans. Of course, this is a company that's already busy trading energy, rigging up high-speed WiFi in middle America, developing self-driving cars and tryingto make everybody look like Star Trek characters. So who knows how far they're willing to go.


No comments: