Apple Pay vs. Google Wallet: A Comprehensive Comparison

Apple and Google enjoy immense loyalty from their users, often to the point where comparing the two companies feels like comparing apples and oranges. However, when it comes to their mobile payment systems, the differences between Apple Pay (also known as Apple Cash) and Google Wallet (formerly Google Pay until 2022) are not as pronounced. While Apple Pay might be simpler to use, Google Wallet offers a few additional features. It’s also important to note that P2P (peer-to-peer) payments through Google Pay are no longer available in the U.S.

Key Takeaways

• Both Apple Pay and Google Wallet are widely accepted mobile payment solutions and feature digital wallets, despite their different names.
• While Apple Pay may be more user-friendly, Google Wallet provides additional features, though Google Pay’s P2P payments are no longer offered in the U.S.
• Apple Pay is generally more suitable for teenagers aged 13 and up for both P2P and retail transactions, with easier parental oversight.
• Google Wallet stores card details on its servers, acting as an intermediary, whereas Apple does not track transaction data.

Apple Pay vs. Google Wallet

Although Apple Pay and Google Wallet have similar functionalities, they diverge significantly in terms of security. Below is a detailed comparison of the two systems:

Both Apple Pay and Google Wallet use NFC technology for contactless payments, but their implementations vary. Apple, with control over its hardware, offers Apple Pay on iPhones with Face ID or Touch ID (except the 5s), iPads with Touch ID or Face ID, Apple Watch Series 1 and later, and Macs with Touch ID. In contrast, Google’s PIN-based authentication system allows Google Wallet to function on a wider range of older hardware. Both systems facilitate online purchases directly from apps or websites, handling the checkout process automatically and requiring only PIN or biometric verification to complete the transaction.

Apple Wallet vs. Apple Pay

Similar to the differences between Google Wallet and Google Pay, Apple Pay and Apple Wallet have distinct roles. Apple Pay is the secure payment system for Apple devices, while Apple Wallet is a digital storage system for credit or debit cards, tickets, passes, IDs, and more.

Apple Pay vs. Google Wallet for Teens’ Use

For parents or guardians of teenagers who are interested in mobile payment apps, Apple Wallet’s Apple Cash Family is a compelling option. It allows adults to add family members under 18 to their own Apple Wallet account, enabling them to load money onto the teen’s account, set restrictions on transactions, choose payment recipients, and receive notifications of transactions.

Apple Cash Family is particularly useful for teens because many popular retailers (such as movie theaters, grocery stores, clothing stores, and fast-food outlets like Taco Bell) accept Apple Pay.

Google Pay’s P2P payments are no longer available to U.S. users, though they were once part of Google Wallet. Previously, Google allowed parents to add children to their Google account, enabling adults to restrict spending to specific apps or purchases and require pre-authorization for transactions. Kids under 13 were unable to make purchases using Google Assistant, the company’s AI-powered virtual assistant app.

Google Pay used to offer Purchase Requests, a feature that let kids request money for purchases from the supervising adult. This request system allowed the adult to review and decide whether to approve the transaction, even without a designated family payment method.

Security Systems

Credit card fraud remains a significant issue globally. As financial institutions and retailers update their systems, mobile payment solutions like Apple Pay and Google Wallet help advance payment security in the U.S. Both systems provide robust security measures, though they have different approaches.

Google Security

With both systems, card details are entered only once during setup. Google acts as an intermediary by storing card information on its servers. Google issues a virtual card to your device, and when a transaction is processed, Google handles the payment using the stored card details.

Apple Security

Apple uses a method known as tokenization. When card details are provided to the device, it communicates directly with the issuing bank to receive a device-specific token called the Device Account Number (DAN). This DAN is stored on a secure chip in the device and is used for transactions, ensuring that real card details are never shared with the merchant.

Does Apple Pay Charge Fees?

Apple Pay does not charge fees to consumers. Instead, Apple generates revenue directly from the banks that issue the cards linked to Apple Pay accounts.

Does Google Wallet Charge Fees?

Google Wallet does not charge consumers fees either. Instead, Google earns revenue by charging vendors a percentage of each transaction and through targeted advertising.

Does Apple Pay Offer a Credit Line?

Apple Pay does not offer its own credit line but is linked with the Apple Credit Card.

Did Google Pay Offer a Credit Line?

Google Pay did not offer a credit line in the U.S. when it was available. As of June 4, 2024, Google Pay’s P2P payments are no longer available in the U.S.

The Bottom Line

Apple Pay was once advertised as “Your wallet. Without the wallet,” a description that aligns more with Google Wallet. Conversely, Google Pay was marketed as “an easier way to pay,” a tagline that fits Apple Pay’s functionality. Both systems provide convenience and a degree of security, making the choice between them largely a matter of personal preference.