Google wants to avoid any problem derived from Brexit and has decided to move the management of its financial services from London to Dublin from next Thursday. In a brief note, the technology giant has informed Google Payments users that they are going to make some changes in the terms of service so that, even if the UK’s relationship with the European Union changes, they can continue to use their services as usual.
More details
“As of April 4, 2019, Google Ireland Limited will be responsible for providing these services, instead of Google Payment Limited [a British subsidiary] .When this happens, you can continue to check your previous transactions at pay.google.com, but Google Ireland Limited will process your payments and your information, in accordance with the stipulations of the new terms of service”, said the aforementioned statement.
Google warns, however, users of this service do not worry, because the changes “will not affect” their experience of use. In 2017, the subsidiary with which payments were managed in London recorded revenues of 175 million euros and a net profit of 8.1 million. “With this movement we only want to guarantee that we can continue to operate and provide the service as in Europe, whatever happens with the Brexit”, they say from the company.
About the transactions
The subsidiary Google Ireland Limited was created in 2003 and since the end of 2018 is responsible for managing user data in Europe. The transfer from London to Dublin comes after the technology company obtained last December licenses from the Bank of Ireland and Lithuania to operate as a payment entity across the EU. The authorization in Ireland came two years after Facebook also obtained in that same country a license to act as an electronic money entity. Google Payment Ireland can send money, manage payment accounts, execute direct debits and transfers, as well as issue payment cards.
Problems for other companies
In addition to Google, other companies such as TransferWise have also taken steps to avoid any problems arising from Brexit. Last January, the money transfer company requested a license in Brussels to ensure its service and from April 10 it will manage all its payments in Europe from the Belgian capital.
Also, as reported by CincoDías, 65 British insurers were studying how to stay in Spain if there is hard Brexit and some like Prudential Assurance, Hiscox Insurance, Domestic & General Insurence, QBE Insurance or AIG Europe had created other subsidiaries outside the United Kingdom to give continuity to your business without problems.
Likewise, many companies related to the British fintech have been showing their concern for the recruitment of talent by Brexit for months.