Google 's GBuy Payment Service Prepares to Battle for Marketshare with PayPal

[mandy]

When Jeff Jordan learned last May that Web-search leader Google Inc. was building its own Internet-payment service, he reacted swiftly.

Mr. Jordan, who is president of eBay Inc.'s PayPal online-payments unit, immediately asked employees to unearth information about the Google service. Soon, PayPal employees were monitoring blogs, news reports and other data for information about Google's progress in payments. PayPal staffers even gleaned details about Google's plans during regular calls to customers who were eager to dish about how Google had reached out to them.

"It's a very legitimate competitive threat," says Mr. Jordan, 47 years old. "It's hard not to pay attention to what Google is doing."

full article: http://online.wsj.com/public/article/SB1...65647.html

[regic]

Several retailers have been quietly testing a Google payment system called GBuy, and users will see a GBuy icon next to AdWords paid search ads...

...The Journal's report seems to suggest the way Google will get users on board will be through its GBuy retailers. But will eBay accept GBuy as a payment method? Probably, as long as eBay gets its cuts of a sale as is customary.

full article: http://www.webpronews.com/topnews/topnew...rGBuy.html

Google has a long way to go before it can catch eBay's PayPal, which has almost 100 million user accounts. But by coupling the power of search to a stored payment system, Google might be able to recruit a critical mass of users quickly, and GBuy could, over the period of just a few months, become a formidable competitor.

What's the big deal about advertisers displaying a GBuy icon? Well, a couple of things: displaying this icon will convey to the searcher two important facts: first, that an electronic transaction for the advertised good or service can be immediately effected (a sure lure for those searchers seeking immediate gratification), and second, that the advertiser is not a fly-by-night vendor from Polookaville, but one whose credit is good enough (a least with Google) to warrant the display of the GBuy icon.

full article: http://www.webpronews.com/expertarticles...uture.html

[mandy]

An update on payments

2/24/2006 12:01:00 PM
Posted by Benjamin Ling, Product Manager & Tom Oliveri, Product Marketing Manager

There's been a lot of interest and speculation about what Google is doing with payments. We thought we'd give you a quick update on what we've done so far and what we see down the road...

As the number of Google services has increased, we've continued to build on our core payment features and migrate to a standard process for people to buy our services with a Google Account. Examples of this migration include enabling users to buy Google Video content, Google Earth licenses, and Google Store items with their Google Accounts. We also just began offering similar functionality on Google Base.

Looking ahead, we want to continue building payment services that meet the needs of Google users and advertisers. We expect to add payment functionality to Google services where our users need a way to buy online. For us, it's all about bringing our users a better online experience whether they're searching or buying.

full blog article: http://googleblog.blogspot.com/2006/02/u...ts_24.html

related topic: Google Plans to Add Credit Card Payment Functionality to Google Base http://community.tuliptools.com/index.ph...797.0.html

[Kristijntje]

A related article:

Two financial analysts are suggesting that Google Payments is here. "We think in typical Google fashion that it has already been released, starting with Google Video a few months ago, the Google Store more recently, and now it appears that Google Base has integrated Google Payments,"...

While Peck predicted that Google Payments will be a "worthy competitor to PayPal," Mahaney said it will be "extremely difficult to displace" eBay's PayPal as the leading online payments provider given its "96 million accounts base, strong brand recognition, extremely strong position on eBay's marketplace, and very well developed risk management, consumer protection, and fraud prevention measures."

full article: http://news.com.com/2061-10812_3-6043869.html

and another:

In its characteristically understated style, Google has begun offering a new payment option for a handful of people who had listed items for sale on the Google Base posting service, a step that could eventually put the Mountain View Internet giant in direct competition with eBay and PayPal.

The ``Google account'' allows merchants to easily accept payment for creative works ranging from poems to recipes, as well as e-commerce mainstays such as books or collectibles.

In its final form, analysts believe the service could become an alternative to eBay's payment service PayPal, allowing Google to compete with the San Jose company -- one of its biggest advertisers...

full article: http://www.mercurynews.com/mld/mercuryne...977416.htm

[mandy]

A related article:

EBay dominates e-commerce with its online marketplace and PayPal payment service.  Google's entry into both arenas could cause headaches for more established competitors. An online blogger describes it as "shake up the landscape of buying things online". SF Chronicle described it as "sending shockwaves".

On the face of it eBay isn't to perturbed. That's what they are claiming at least and have denied it saw any reason for concern. Ebay has a strong base of 96 million accounts. It says it is better equipped with fraud prevention and risk management measures. Its position is unchallenged, especially now that it has the eBay Express which allows users to get past auctions and directly to the merchants from where they can buy new products at a fixed price.

Is that believable?  I have my doubts. Google is Google is Google. Too big for eBay and Paypal.  Look at any recent launch from the Google stable and it's been superlatively popular...

full article: http://www.hindustantimes.com/news/181_1...170001.htm

[mandy]

A related article:

Google’s reported payment option, believed to be very similar to eBay’s Paypal, has sent shivers down not only the competition but internet companies all over the world.

“We developed something for internal use, as we found that there was a gap in the user experience. We wanted to enable people to sell using Google Earth, without the user going through multiple websites and handing their credit card numbers, let’s see where it goes. We have a great relationship with eBay, it’s a great company, but it is not the only answer to payments on the internet,” Alan Eustace told ET enigmatically...

full article: http://economictimes.indiatimes.com/arti...482233.cms

related topics:
Google Provides Update on Planned Payment Services
http://community.tuliptools.com/index.ph...798.0.html

[Kristijntje]

Google is expected to roll out an online payment system at the end of the month that will directly compete with eBay's PayPal, a Wall Street analyst said Friday...

Rohan said GBuy would be launched June 28. The service will let people who post items for sale on Google Base -- a giant online database of listings -- use GBuy to accept payment. In addition, small e-commerce sites could choose GBuy as a payment method...

``GBuy has the potential to be as important to Google as Google Maps or Google News, and there is very little that competitors can do to thwart its success,'' Aiken wrote...

full article: http://www.mercurynews.com/mld/mercuryne...787729.htm

[mandy]

More press coverage of GBuy:

On its core search results pages, Google will designate each merchant accepting GBuy as a "trusted GBuy merchant." If consumers view this as a mark of safety and security, Rohan believes this should increase click-through rate...

GBuy looks to be a direct competitor to PayPal's "off-eBay" initiative, which is still early in its development...

full article: http://www.forbes.com/markets/equities/2...ets09.html

Google is expected to unveil its online payment system on June 28, a long-anticipated service that will compete with eBay’s PayPal, according to an analyst’s report issued on Friday.

The new system also allows the search giant to determine what products and services get the most hits, a feature that will help Google adjust online ad rates in response.

Called GBuy, the system will process payments between shoppers and merchants, RBC analyst Jordan Rohan wrote. Moreover, he said, GBuy could eventually expand to handle consumer-to-consumer payments...

full article: http://www.redherring.com/Article.aspx?a=17166&hed=Paying+Up+on+Google§or=Industries&subsector=InternetAndServices

[mandy]

This week, consumers could get access to another electronic-payment option -- and one that offers a mail-in rebate incentive to boot.

Web-search giant Google Inc. is set to introduce a test version of its GBuy online-payment service as early as this week, according to people briefed on the situation. The service, which would challenge eBay Inc.'s PayPal online-payment service and others, has been expected for several months. To attract consumers, Google plans to offer an unspecified rebate to people who complete online purchases using GBuy...

Here is how the service will work: Consumers who search for items like "shoes" or "strollers" on Google's search site will see text ads with a symbol or icon designating advertisers that accept GBuy payments. Shoppers normally would have clicked on an ad and been linked to that merchant's Web site. Now, while they will still be linked to the merchant's site, they will go through a different checkout process integrated with Google if they choose GBuy for their transaction...

full article: http://online.wsj.com/public/article/SB1...in_tff_top

[xppman]

From scanning the pp boards and my gut tells me
that millions are probably hoping this will
bring paypal to it's knees.

I can't say I'm not among them because I as well as those suspected
millions have been wanting an alternative to curb the
arrogance of ebay for a long time.

I just hope a lot of these folks are not let down
as has happened so many times in the past.

Some of the more vocal pp haters are banking on it and I think they
may be gloating a bit too soon on ebay's boards.

Hopefully this will turn out as so many want it too but I myself
will just do as others with a merchant accounts and see what pans out.

If GBuy looks good and we can offer it as an option.
We will and CLOSE our pp account once and for all.
If not... well. We still have our merchant account.