Google plans to launch a checking account service next year in a collaboration with Citigroup and a credit union in Silicon Valley. The Wall Street Journal reported this on Wednesday, 13th November 2019.

In a project code-named Cache, Google is working on a system that will host checking accounts. The accounts will clearly bear the brands of the financial institutions. According to the Journal report, it will also handle security and regulatory compliance issues.

The report quoted a Google executive as saying the company’s approach “is going to be to partner deeply with banks and the financial system” in what might be seen as a longer but safer route.

The move would come as internet titans become increasingly involved in online financial transactions and e-commerce.

Apple and Google both offer digital wallets that can be used on smartphones to pay for purchases online or in real-world shops. Apple also recently released a credit card, the Apple Card.

Amazon is reportedly in talks with banks about creating a checking account service.

Meanwhile, Facebook has been steadily building up e-commerce tools at the social network. It also builds up the ability to send money using its messaging apps such as WhatsApp.

Facebook has gone a major step further, releasing controversial plans for a global cryptocurrency called Libra.

Facebook had originally hoped to roll out Libra next year. However, it has met fierce resistance from regulators and governments who see it as a threat to their monetary sovereignty.

The social media giant’s chief executive Mark Zuckerberg last month opened the door to scaling back plans for Libra if it cannot win approval as a new currency for global exchanges.

Zuckerberg told US lawmakers on 23rd October 2019 about the goal of Libra. According to that, it was “to build a global payment system rather than a currency”.