Google Pay for Business: The Ultimate Guide

Google Pay is making life easier for businesses and consumers alike, so it’s no wonder that it’s gaining popularity. In fact, digital wallets like Google Pay are expected to make up more than half of all e-commerce transactions by 2023.

Some key benefits of Google Pay include easy setup, an intuitive user interface, robust security features, and the convenience of contactless payment. In this article, we’ll explore how businesses can benefit from choosing Google Pay as a payment method and why customers might want to use it for purchases.

Benefits of Google Pay for businesses

Whether you’re an online-only retailer, a brick-and-mortar store, or both, you can take advantage of Google Pay’s features to enhance your business’s operations. Consider these benefits:

• Increased cart conversion: If you want to increase sales, it’s important to look for ways to improve the customer experience. Google Pay offers cart abandonment solutions that can help increase conversion rates (i.e., completed sales). For example, on their first purchase with Google Pay, a customer’s payment information is saved to their Google Pay account, so they don’t need to re-enter it for future purchases. This can decrease cart abandonment rates by reducing the number of steps in the checkout process.
• Increased in-person sales: “That awkward moment when someone goes to pay you and [realizes] that they have no cards, no cash, and no other viable way to pay for your services is no longer awkward because you accept Google Pay, and it’s available on their phone,” says Amanda Loeffler, owner of Amanda Loeffler Notary Services.
• High customer satisfaction: Another conversion rate factor is the UX design of a digital wallet. Google Pay is highly intuitive and easy to use from a customer perspective, making it a favorite among consumers.
• Fewer abandoned carts: Integrating payments directly into mobile notifications allows businesses to send notifications to customers to complete a purchase. This way, if a customer abandons a cart or forgets to complete the purchase, they’ll receive a notification on their phone from the business to finish the transaction.

• Mitigated security risks: Is Google Pay secure? No matter how many security processes a business has in place, it may still be vulnerable to fraud or chargebacks. Google Pay security features mitigate these risks. The platform uses a unique card token instead of a customer’s card number, for instance, so the business doesn’t have to deal with any customer card information. On top of that, Google Pay Shield prevents hacking, verifies the customer’s identity, and prevents fraud.
• Merchant support: Businesses value Google Pay support and customer service. You can use the online help center anytime you have a pressing question or call the Google Pay customer care line to speak with a representative.
• Payment gateway integration: It’s quick and easy to integrate Google Pay with payment gateways or payment service providers (PSPs). You can implement Google Pay with just a few lines of code.
• No Google Pay for business fees: Google Pay is free to use for both merchants and consumers. “I love saving money. I really hate paying fees for anything,” says Loeffler. Keep in mind that some businesses may charge their own fees for consumers who use a digital wallet, irrespective of whether it’s Google Pay or some other system. Wondering whether you should charge a fee? Consider the pros and cons of how the policy will affect your customers and your business for Google Pay.
• More credibility: “I feel like the ability to offer Google Pay enhances your credibility with your clients,” says Loeffler. “Most have mentioned to me that they feel like my company is growing beautifully because of my ability to offer various payment options including Google Pay.”

Benefits of Google Pay for customers

While the benefits of Google Pay for businesses are compelling, it’s also important for companies to consider how Google Pay affects their customer base. After all, if customers decide they don’t like using Google Pay, that could negatively impact a business.

Current survey data, however, shows that many consumers find digital wallets like Google Pay to be a convenient and easy option when making purchases. Here are some benefits of Google Pay that account for why its use is increasing:

• User friendly: Google Pay offers one-click payment, which makes it easy and quick to use. Customers can save their payment information to their online Google account and don’t have to reenter it when making in-store or online purchases. This makes checkout a breeze. Loeffler notes that Google Pay makes carrying cash and credit cards a thing of the past.
• Convenient: “The major advantage of Google Pay for my customers has been the convenience of transferring funds from their mobile phones,” says Rhett Stubbendeck, CPCU and CEO of LeverageRx, a personal finance and insurance company for healthcare professionals. “[It] helps them make their payments on time without the hassle of reentering debit card numbers and pins, etc. It also allows them privacy by hiding their real account details.”
• Highly secure: Many consumers ask, “Is Google Pay safe?” The answer is a resounding yes. Google Pay requires a passcode or biometric authentication before payment can begin, which reduces cyber threats and ensures customers’ confidential data and identity are secure. How safe is Google Pay data-wise? All customer information is encrypted during the transfer process and at rest.
• Highly mobile: One of the key benefits for consumers is that Google Pay is always ready on the go. Consumers can use it on their smartphones or smart watches, so they don’t have to worry about carrying a wallet wherever they go.
• Free to use: As we mentioned, it’s free for businesses and consumers.

Minimal “cons” of Google Pay

To be fair, when it comes to Google Pay pros and cons, there are a few drawbacks. One notable disadvantage is that Google Pay doesn’t work on every type of smartphone.

Stubbendeck notes that some of his customers have complained about the incompatibility of Google Pay with their phones. As a result, he has to offer alternative payment methods. In addition, there are countries that prohibit the use of Google Pay. And it’s important to remember that while Google Pay has many layers of security, all digital wallets come with some privacy concerns.

Now that you know about the pros and cons of Google Pay, you can determine whether it’s a solution that will benefit your business. Next, we’ll look at how to set up Google Pay for Business.

One of the many advantages of using Google Pay for business is that it’s easy to set up and start using. While some digital wallets have complex signup processes, enabling Google Pay for business takes just a few steps. The process is also simple if customers want to add loyalty, gift, or transit cards to their Google Pay account to make purchases.

How to set up Google Pay for business

Follow the seven steps below to get the process rolling. The Google Pay site claims merchants can be up and running in under a week.

1.     Sign up for Google Pay for business online

Opening an online account is the first step to setting up Google Pay for business. You’ll need a Google account, but that’s also easy to set up. Have your Unified Payments Interface ID (a unique identifier for your bank account) or Virtual Payments Address handy for the signup process. If you don’t know this ID number, contact your bank.

2.     Verify the bank account that will receive payments

One of the main questions merchants have is how to transfer money from Google Pay to their bank account. To do this, connect your bank account to Google Pay.

As part of the signup process, Google Pay deposits a small amount of money into the selected bank account, which is a simple way to verify that the account is yours. Once you’ve received and confirmed the amount transferred, you’ll reenter the signup portal and enter it into the UPI verification screen.

3.      Pass the Google Pay approval process

The Google Pay team will review the account information you’ve provided, which can take up to 48 hours. You’ll receive approval via email. If the team requires further information, you will need to provide that before your Google Pay account is approved.

4.      Integrate Google Pay into your business

Once your Google Pay account has been approved, you’ll need to enable your customers to use it as a payment option when shopping at your business. Depending on your business and the payment gateways you use, this can include various integration options, such as in-app, desktop, and website integration.

5.      Set up your NFC terminal

Google Pay requires an NFC terminal to accept payments via mobile devices in brick-and-mortar stores. NFC terminals transfer data between certain devices within a specific proximity. By setting up an NFC for Google Pay at your location, customers can use their mobile phones to pay for your goods and services.

6.      Display the Google Pay logo

To promote your new payment option, display the Google Pay logo prominently, whether at the checkout counter and front door of a physical store, on the checkout page of your website — or both.

7.      Train your staff to use Google Pay

Review the details of how Google Pay works with your staff before you enable it as an active payment option. Discuss ways they can troubleshoot if something goes wrong and how to answer questions customers may have about Google Pay.

If you need help setting up Google Pay, work with a partner. “My best advice is to find a great credit card payment processing company that you really like and make sure that they have Google Pay integrated into their system,” says Loeffler. “They set everything up for me and I was able to just start using my payment device right away. It was lovely.”

How to add loyalty, gift, or transit cards to Google Pay

Making purchases isn’t the only way customers can use Google Pay. They can also use it like a digital wallet. For example, if your business sells gift cards, customers can add those cards to their Google Pay accounts. Similarly, if your business offers loyalty cards with monetary value, those can also be added to a customer’s Google Pay account.

Wondering how to add a gift card, a loyalty card, or any other similar card to Google Pay? Follow these simple instructions or help your customers do the same:

1. Open the Google Pay app. You’ll need to do this whether you’re adding Google Pay gift cards, loyalty cards, transit cards, or a similar item.

2. Tap on your profile picture and then tap Wallet. This will open the Wallet function.

3. Select an option. You’ll see options such as Loyalty and Gift Card. Select the option you want to add.

4. Add your card. Follow the prompts in Google Pay to add the card to your Google Pay account.

You can use these instructions to add different forms of payment in addition to loyalty, gift, and transit cards. Google Pay also accepts passes that provide discounts, payments, or access. Examples include student ID cards, event tickets, movie tickets, boarding passes, store cards, and more.

Wondering how to add coupons, boarding passes, or event tickets to Google Pay? Instead of opening the Google Pay Wallet function, search for Passes in the search bar. Then select the type that applies to you and follow the prompts to add it to your Google Pay account.

Whether you want to enable your customers to make in-app purchases, contactless payments, or person-to-person money transfers, you can with Google Pay. Customers can even pay with a Google store card.

Now that you know how to set up your Google Pay for business account and enable multiple forms of payment, it’s time to learn the finer details of how Google Pay for business really works.

Digital wallets can seem confusing at times, especially when you’re first trying them out. If you’re new to using a digital wallet like Google Pay, or your staff or customers have questions about it, it’s important to know how it works. In this article, we go into some frequently asked questions about how Google Pay for business works so you’ll feel comfortable using the app, training your staff to use it, and explaining the finer points to your customers.

Can customers use Google Pay in stores and online?

Absolutely. Google Pay is a digital wallet that works online and in brick-and-mortar stores.

Online, Google Pay users can make purchases by clicking the Google Pay button and choosing a payment option associated with their Google Pay account.

How does Google Pay work in person? A business sets up a Google Pay NFC terminal, and a customer paying with Google Pay holds their smartphone close to the terminal. The phone communicates with the terminal, which transacts the payment by sending the required data to the business’s store checkout and bank account. Keep in mind that there are many NFC payment apps, so you’re not limited to Google Pay if you have an NFC terminal.

Does Google Pay use tokenization?

Yes, Google Pay uses tokenized card numbers because security is a major concern for businesses and customers who use digital wallets. What is tokenization? When a customer makes a purchase, Google Pay doesn’t actually send their credit or debit card information to the business. Instead, it sends a numerical token associated with the customer’s card number. This way, the business sees only the token number, not the actual debit or credit card number.

After a customer has verified their identity and added their credit or debit card to Google Pay (see Chapter 3), the platform creates a token for that card. The customer’s mobile phone stores the token number, and Google Pay transmits it to the payment terminal when a transaction occurs. Then, the customer’s bank decrypts the token information to complete the transaction.

To use tokens effectively, Google Pay works closely with mobile device manufacturers, payment terminal manufacturers, payment networks, Token Service Providers (TSPs), and card-issuing banks. There’s a lot of collaboration happening behind the scenes.

From a customer perspective, everything happens automatically through the hardware and software; all a customer has to do is add their card, verify their identity, and make a purchase.

Can people send money to each other through Google Pay?

Wondering how to use Google Pay to send and receive money to other people? You can do this using Google Pay, but only in the U.S. and certain other countries (see the section about international transactions below).

Regarding the peer-to-peer service, people often ask these basic questions: How do I transfer money from Google Pay to a bank account? How do I receive money from Google Pay? And how can I take out money from Google Pay?

The answer to all three questions is that when a person receives money in their Google Pay account, the funds are added to their Google Pay balance and are reflected there. The account holder can transfer that money to their linked bank account or debit card anytime.

Does Google Pay work internationally?

Google Pay is available in many countries worldwide, but its service offerings vary from country to country, so it depends on what you want to do with the digital wallet. For example, if you want to pay in-store with contactless payments, there’s a long list of places where Google Pay is accepted.

However, if you want to send money to other people via Google Pay, you can currently do so only in the United States, Singapore, and India. However, this short list may soon grow as Google is working on ways to expand the regions where peer-to-peer transactions are supported.

Now that you know how Google Pay works, it’s time to learn where and how you and your customers can use Google Pay.

When you start using Google Pay in your business, you may get a lot of questions from your staff and customers about this digital wallet. Other businesses may want to know how to accept payment from Google Pay or how to get a QR code for it.

In this chapter, we cover those questions and more — the where and how of Google Pay for business usage.

Common Google Pay for business use cases

Google Pay is a versatile digital wallet that doesn’t have any industry-specific boundaries. Here are some common establishments that might accept Google Pay for purchases:

• Restaurants. Restaurants that accept Google Pay make it easier and faster for their customers to pay. Similarly, food delivery businesses that accept Google Pay enable customers to complete the ordering process faster. What restaurants take Google Pay? Look for the Google Pay logo on the front door or near the cashier.
• Hotels. Hotels are wise to accept Google Pay because the interface includes areas where a hotel or chain can add information about its amenities, star rating, and other industry-specific details.
• Nonprofits. Approved nonprofit organizations (NPOs) can take advantage of Google Pay for nonprofits to expedite the collection of donations. Wondering how to accept donations using Google Pay? To get started, prove, validate, and certify your NPO’s nonprofit status.
• Online stores. Google Pay makes purchasing online even easier because customers don’t need to enter their payment details multiple times. They simply click the Google Pay button and select the card they want to use.
• Apps. Many mobile applications accept Google Pay, and the platform offers more credit card security than payment systems requiring customers to enter their card details with every purchase. For example, customers can use Google Pay with Uber or with Airbnb apps.

Ways to accept payments with Google Pay

There are two main ways a business can accept Google Pay from customers: in-store and online.

Wondering how to accept payments with Google Pay in-store? All your customers need to do is stand near the cashier’s NFC terminal and hold their smartphone up to the terminal.

Another way to accept Google Pay in a brick-and-mortar store is to use a Google Pay QR code. How do you add a QR code to Google Pay? You don’t actually have to create or add anything; the code appears automatically on your mobile device screen when you tap the QR code option in Google Pay to accept payment.

Ask your customer to scan the QR code, which will automatically complete the transaction by transferring the payment from the customer’s Google Pay account to your business’s bank account (your account information is encoded in the QR code).

For online payments, ensure you have the appropriate integrations set up so that you can accept Google Pay through your website, mobile app, or payment form.

How to find stores that accept Google Pay

Customers may ask you where else they can use Google Pay. Conveniently, Google Pay is accepted at many businesses, such as supermarkets, pharmacies, restaurants, clothing stores, gas stations, beauty shops, and more.

Suppose a customer is wondering who accepts Google Pay online or in person. In that case, you can direct them to lists of participating businesses on Google Pay online or in the mobile app.

The online list is complete and comprehensive; it includes a wide variety of stores, websites, apps, and even transit agencies. The Google Pay mobile app features a Use Google Pay Nearby section, which you can access by scrolling to the bottom of the screen and expanding a list; this version lists only nearby brick-and-mortar stores.

Countries where Google Pay is available

What countries support Google Pay? The list is pretty long if a customer wants to purchase from a store or website using their mobile phone or smart watch. Google Pay is available for this purpose in many countries in Europe and Asia, and all of North America.

Peer-to-peer payment service through Google Pay is currently available in the United States, India, and Singapore.

You’ve learned where and how to use Google Pay to accept payments. Next, let’s discuss the finer details, like fees, taxes, rewards, etc.

Whenever you’re considering signing up for a new business app, it’s important to read the fine print, which can include terms and conditions about costs, taxes, limits, rewards, and other aspects of use. These details can significantly impact your business’s success and customer satisfaction, so it’s best to know what you agree to before you sign on the dotted line.

Google Pay policy for eligibility

While many businesses want to use Google Pay, not all are able to. Google Pay has a strict business policy that dictates which types of businesses can and cannot use the solution. Its restrictions include adult products, illegal services, unauthorized copyrighted material, and dangerous products.

The policy also includes some country-specific eligibility criteria. For example, some Google Pay features, such as peer-to-peer payments, are available only in certain countries or regions. There are device-specific criteria, too: Some Google Pay features are available only on certain devices. Be sure to check all the eligibility criteria before you sign up for a Google Pay account.

Transaction limits

There are transaction limits on sending, receiving, and transferring money via Google Pay. These are based on specific criteria.

For example, if a user’s identity is verified, they can use Google Pay to send up to $5,000 to a friend or family member. If their identity isn’t verified, they are limited to $500.

If a customer wants to make a contactless payment to a business, the maximum single transaction amount is $2,000, and the daily maximum total transaction amount is $2,500.

Businesses are advised to know the transaction limits, so they can tell customers about them if they’re making a purchase that exceeds a maximum allowable amount.

Fees and transaction costs

How much does Google Pay charge per transaction? Fortunately for businesses and consumers, there are no fees. The service is free. This means no one has to worry about Google Pay transaction fees or charges on their bank account statements.

Remember that some businesses may charge for the convenience of using digital wallets, and regular cardholder or merchant fees may apply if a credit card is used through Google Pay.

Taxes

When using Google Pay, any sales tax, service tax, value-added tax (VAT), or similar tax is the business owner’s responsibility. While businesses don’t have to pay a Google Pay tax rate, they do have to charge their customers tax on their purchases and then remit the tax to the applicable tax jurisdiction. The best practice is to be diligent about calculating and charging the correct tax.

Rewards

To incentivize businesses and consumers to use Google Pay more often, Google offers Google Pay rewards in the form of cash back.

Wondering how to get Google Pay rewards? Your first step is to opt in to receive rewards. If you’re a business, you’ll receive rewards each time your business reaches a certain number of transactions within a specified time frame. If you’re a customer, the rules are similar.

Invoices

Businesses may have customers who ask for a Google Pay invoice or Google Pay receipt. This is a self-serve option: Users can log into their Google Pay account and view their transaction history, where they’ll see the business name and logo, the branch location where the purchase was made, and the payment amount.

The transaction history also shows certain payment details, such as holds or authorizations. Businesses should train their staff in these details so they can communicate them to customers.

With the fine print details sorted out, it’s time to look at how you can integrate Google Pay with your other business systems. In the next chapter, we’ll cover Google Pay integrations and how you can use them.

Technology integrations enable different software applications to work together effectively. For instance, Google Pay works with many other systems to send and receive the data involved in payment transactions.

Using the appropriate Google Pay integrations helps your business save time and prevents headaches. This chapter looks at commonly available Google Pay integrations.

Google Pay on your website

One of the most common Google Pay payment methods is through an e-commerce website or Android application. This provides a secure and fast checkout option for your customers. You need a payment service provider (PSP) to enable Google Pay on your website or app.

Google Pay has partnered with many PSPs, including Square, Stripe, PayPal, Authorize.net, Braintree, BlueSnap, Paymentwall, CardConnect, and many more. It even “plays nicely” with other payment systems.

Users who want to add another form of payment to Google Pay, such as Apple Pay, will be pleased to know that Google Pay and Apple Pay are available in a package on Jotform.

Google Pay on your online forms

If you don’t have a website or don’t want to enable Google Pay on your website, you can enable it on your business forms. Jotform offers a Google Pay integration that gives your customers more ways to pay, right on the order form: Simply use the Jotform Form Builder to create order forms, donation forms, event registration forms, or other types of forms with Google Pay built in.

The integration is supported by Square Google Pay and Stripe for Google Pay Checkout. Remember that Jotform never charges transaction fees, so you won’t incur additional costs when you enable Google Pay on Jotform’s forms.

Google Pay and PayPal

Consumers in the United States can connect PayPal to their Google Pay accounts on an Android phone. This integration even offers automatic refills of the PayPal balance from your linked debit or credit card. If your purchase total exceeds your PayPal balance, PayPal will automatically refill your balance to complete the transaction.

Wondering how to add PayPal to Google Pay? Tap your profile picture in Google Pay and click on Wallet. Next, click on Payment Card, select PayPal, and follow the prompts to add it to your account. If you want to remove PayPal, follow the same steps and click on Remove Payment Method.

Google Pay and Shopify

Shopify is a leading e-commerce website builder used by small businesses and large organizations. If you have a Shopify store, enabling Google Pay at checkout is a good idea. Not only does it give your customers another way to pay, but Google Pay doesn’t charge any transaction fees — so there’s no additional cost to you or the customer.

As to how to add Google Pay to Shopify, you need to do it in your Shopify store. Go to the admin panel, click Settings, and select Payment Providers. Next, click on Credit Card Providers. Click Manage and select Google Pay in the Wallets section. Click Save to complete the process of adding Google Pay to your Shopify store.

Shopify isn’t the only e-commerce platform that accepts Google Pay. You can add Google Pay to WooCommerce, BigCommerce, OpenCart, and other online stores.

“All of the platforms now seem to offer Google Pay,” says Loeffler. “I use SpotOn for my payment processing, and I am able to accept Google Pay. Same with my PayPal readers as I use PayPal for my international clients. I know Square, Toast, Clover, ID TECH, Ziosk, and several others offer it as well.”

We’ve explored how Google Pay can integrate with some of your other business systems. Next up, it’s time for the final due diligence. Let’s look at some Google Pay alternatives to determine whether one of them may better suit your business.

Google Pay is an excellent mobile payment app that enables cashless transactions and can be used online and in person. However, Google Pay may not be available in your country or may offer only some of the features you need. If this is the case — and you’re looking for Google Pay alternatives — you’ve come to the right place. In this chapter, we look at a couple of comparable options for digital wallets that may work for you.

Samsung Pay

Samsung Pay is another popular cashless payment option, but be aware that it can only be used with a Samsung phone. Much of the functionality between the two apps is the same, but Samsung has additional security measures to allow a payment to go through.

Like Google Pay, Samsung Pay also supports gift cards, membership cards, and similar cards. Many businesses accept multiple digital wallets, so you don’t have to choose between the two. For more details comparing both options, read our article on Samsung Pay vs Google Pay.

Apple Pay

Apple Pay and Google Pay are similar in terms of features, security, and rewards. One difference is that Google Pay uses a pin-based identification system, while Apple Pay uses Face ID and Touch ID.

Considering Apple Pay vs Google Pay vs Samsung Pay? You’ll find that all of these options are comparable, and the one you choose may just come down to the type of phone you (and/or your users) have. All three apps make the checkout process seamless, both online and in-store.

“However, Apple Pay is not compatible with Android devices and has limited functionality,” notes Stubbendeck.

PayPal

What about Google Pay vs PayPal? Both of these solutions are digital wallets, but PayPal can also be used as a payment method within Google Pay (although that isn’t true the other way around). Another difference is that Google Pay is limited if you want to send money abroad, whereas PayPal can be used in more countries than Google Pay.

Venmo

Considering Google Pay vs Venmo? Owned by PayPal, Venmo is primarily a peer-to-peer payment app. It’s mainly used to send and receive money among individuals rather than businesses, but it can also be used to make purchases.

A notable difference between Venmo and Google Pay is that Google Pay payments are immediately deposited into your bank account. With Venmo, you must manually transfer from the app to your bank account. Typically, if you accept PayPal at your business, Venmo is also included in that offering.

Conclusion

Are you ready to take advantage of Google Pay’s benefits? This digital wallet gives businesses a simple way to handle transactions and offers consumers flexibility and a great checkout experience. It’s easy to set up from a business perspective, offers many security features to keep data safe and prevent fraud, and is widely used worldwide. If you want to make the buying process easier for your customers, Google Pay is an excellent choice for your business.

“Everything from ordering food to paying for your dry cleaning, legal services, notary services, your car care, pet care…literally anything that a consumer is paying for — it’s a benefit to the business to offer Google Pay for those who don’t carry cash or a wallet any longer,” says Loeffler. “Those awkward moments of people not having money to pay for something are mostly in the past.”

Meet your Google Pay for Business guides

Amanda Loeffler

Loeffler is the owner of Amanda Loeffler Notary Services. She strives to make things as easy as possible for every client and loves offering Google Pay. Loeffler holds a bachelor’s degree in business and organizational leadership with an emphasis on entrepreneurship.

Rhett Stubbendeck

Stubbendeck is the CPCU and CEO of LeverageRx, a technology-focused personal insurance company focused on helping medical professionals nationwide reach their financial goals.