Google to Compete with PayPal?

PayPal is secure in its domination over the electronic payment industry, at least for now.

Following reports that Google planned to launch a new Internet payment service (nicknamed Google Wallet), Eric Schmidt, CEO of Google, denied that Google would be directly competing with PayPal. He did, however, acknowledge that Google has plans for some type of electronic payment service.

Without revealing any details, Schmidt emphasized that the Google payment service will not offer the same sort of "person to person, store-valued payments system" as PayPal provides.

The Internet commerce industry was rampant with rumours of the new Google service following an e-commerce conference hosted by securities firm Piper Jaffray. Speculation that Google Wallet would encroach on PayPal territory was reinforced by the appearance of a June 20th article in the Wall Street Journal which stated that Google was planning an online payment service to compete with PayPal.

PayPal is a unit of eBay and generates almost 25% of total eBay revenue. It is used by consumers for making a wide variety of Internet purchases. It allows purchasers to use their credit cards without divulging their credit card numbers to merchants. PayPal takes a percentage of each transaction and had revenues of $233.1 million in the first quarter of this year.

Most of Google's revenue comes from online advertising and this expansion into online payments was seen by many in the industry as yet another example of the rivalry between the two companies.

Google is a giant in Internet commerce with revenues of $3.2 billion last year. A payment service that competed directly with PayPal would be a serious blow to both PayPal and eBay.

Google maintained silence about the rumours until Schmidt's comments last Tuesday. Without elaborating, he stated that Google's payment service would be an extension of its existing advertising programs.

Copyright 2005 by Ross MacIver

This article may be redistributed freely on the Internet or in ezines as long as the resource box and hyperlinks remain intact.

Ross MacIver is the director of Best Online Content. We provide quality content for your web site and offer a full range of design and SEO services.

---

How To Sell Websites Fast !

This article will explain in depth the steps needed to... Read More

Online Credit Card Processing - How to Accept Credit Cards - Ecommerce 101

Back in 1998 (through 2000 or so), I worked for... Read More

Outsourcing Your Ecommerce Order Fulfillment

When your eCommerce business grows to the point where you... Read More

Why Suppliers Should Use B2B Exchanges

Business to business e-commerce is on the rise! Worldwide B2B... Read More

10 Second Internet Person, sound familiar?

Some people do not understand the Internet idea of online... Read More

The Origins of E-Commerce

What is the Internet?In order to provide a discussion on... Read More

Intranet Portals ? Search and Taxonomies

Knowledge Management for beginnersKnowledge Management (KM) can be defined simply... Read More

Free Competition Analysis for E-Commerce Startup

For anyone who has completed research regarding e-commerce, there are... Read More

Stakeholder Analysis and Stakeholder Management

What is a Stakeholder?Try "define: Stakeholder" in Google and you... Read More

Chinas Online Shopping May Be Booming In The Next Few Years

Data from China Internet Network Information Center (CNNIC) shows that... Read More

ECommerce Scenario in Pakistan

Pakistan with highest growth rates in 1960s and bad politics... Read More

Short Story: The Benefits of Shopping Online

Maria's new lifestyle: Short story about the benefits shopping on... Read More

Shop: Is Shopping Online Secure?

Is shopping online becoming popular and safe enough for you... Read More

Dont Get Ripped Off Getting A Merchant Account

Far too many people get ripped off when setting up... Read More

Ecommerce - Boost Your Business ROI

Did you know that over 90% of all online orders... Read More

How To Start An Internet Business ? Content, Content, Content

When it comes to e-commerce, the time-tested cliché is, "Content... Read More

The Check is in the E-mail

Have you ever had someone who owed your business money... Read More

Distinguishing Features of E-Commerce

E-commerce offers customers the chance to eliminate many stages in... Read More

Government Buying and Selling on the Internet

Global Insight, a leading economic and financial forecasting company, (formerly... Read More

Looking For Free Advertising, Here It Is!

There are lots of ways to advertise for free but... Read More

Shopping Cart Usability

Usable Shopping Carts Increase SalesE-commerce has been around since 1993... Read More

Succeed With Your Own Home Based Business

An internet business is by far the best way to... Read More

Selling Globally Through a B2B Exchange

Participation in B2B Exchanges is increasingly becoming one of the... Read More

3 Powerful Concepts That Climb Marketing Mountains

You have probably heard many times how you should offer... Read More

How to Generate Cash from Your Web Site

The Internet has changed the way people do business today.... Read More

Online Shoppers Say They?ll Buy from Small and Large E-Businesses Alike

As the holiday shopping season begins in earnest, consumers say... Read More

Shopping Carts For The Faint Of Heart

The chief criteria for judging an ecommerce shopping cart are... Read More

Ecommerce Marketing Plan

Concept of ServiceThe current work deals with marketing offer of... Read More

Web Users Crave Familiarity

The sad truth is, general Web users would love it... Read More

Precautions Necessary for an Online Brokerage Business

Maybe no business requiring little or no capital pays as... Read More

What Does It Take to Make Money Online?

What a loaded question! Let's narrow that down a bit... Read More

Does Your Shopping Cart Have a Squeaky Wheel?

Have you ever gone grocery shopping just before a holiday?... Read More

Tell Site Visitors What To Do

Your site visitors make all the choices when it comes... Read More