Game over for PayPal?

Google is getting super aggressive--some people say heavy handed--with their launch of Google Checkout. Not only did they give people free money for signing up, not only did they place an advertisement for Checkout on their homepage (something they said they would never do), now they are rewarding merchants who use Google Checkout with an extra line in their Google Adsense adverisements.

Google Adsense + Checkout = Game over for PayPal.

Check out the text in yellow highlighting (I ADDED THE YELLOW) for Google Adsense advertisers who accept Google Checkout.

This is a HUGE incentive for merchants to signup with Google Checkout--look how much more their ads look. They get that quick checkout icon and an extra line of text.

Go Google Go!

I love the new aggressive Google. I hope they launch free/flatrate auction next. IT IS SO ON RIGHT NOW!!!

Tags: ebay, google, google adsense, google checkout, GoogleAdsense, GoogleCheckout, internet, paypal

Feb 12th 2007 2:01AM
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1. j-I think it's pretty interesting as well. For me it raises the question of whether or not this new, more aggressive Google could be a result of a company that finds meeting future growth targets increasingly challenging? It would make sense that they've done the easier, less-controversial things and now have moved on to the more heavy-handed (but very savvy) business moves. Disclosure: I own a pittance of Google stock. surya

Posted at 2:58PM on Feb 12th 2007 by surya

2. This is a great move but isn't it pretty old? Like a least 6 or 7 months old?

Posted at 2:59PM on Feb 12th 2007 by Ryan Holiday

3. As Ryan said, they have been doing this for a long time. It was actually part of the original launch back in June 2006. At launch they gave merchants $10 in Google Checkout money processing for free with every $1 spent in AdWords. That game has changed and now processing is free through the end of 2007. However it will revert back to that on January 1st, 2008.

I've only used Google Checkout as a customer and it was fairly easy. No complaints.

Posted at 3:28PM on Feb 12th 2007 by Jon Gales

4. I too am so ready for Google to figure out how to knock eBay off the top of the heap (perhaps with a trans brand search engine for any auction site that uses Google Checkout). Free/flat rate auctions have been tried before, but never reached the critical mass needed to overtake eBay's market share.

Posted at 3:52PM on Feb 12th 2007 by John Frost

5. Ditto. I canceled my PayPal ID of many years after some less than spectacular support when the bank the ID was linked to changed hands. I have no reason to think Google will be any better, but as soon as they add a few more vendors I'll find out. I also think eBay is WAY to expensive for the "service" they provide. It's a great way to run a business if you live next door to a junk yard (or own one).

It's also fine for someone with a LOT of time on their hands to deal with receiving something that isn't what you thought it would be.

If you HAVE some junk, give it to GoodWill and feel good about it. If you WANT some junk, go directly to the many reputable dealers out there. eBay no longer provides any service that you can't get for free on the net generally.

Posted at 4:30PM on Feb 12th 2007 by macbeach

6. Game over for PayPal? Hardly. Not until Google starts supporting merchants in countries other than the United States, and even then, I'm skeptical.

Posted at 5:59PM on Feb 12th 2007 by Mack D. Male

7. I've always felt that PayPal was a service to buy stuff from eBay, long before eBay finally bought PayPal.

Of course, eBay thinks PayPal is something more than that, but that's not realistic.

Established businesses aren't going to rely on any non-credit-card system to provide their checkout process.

Google Checkout is something new, a way for established business to market themselves, the added benefit of that added graphic is undeniable (and unfair), and a way for un-established businesses to get into the market without appearing as if they operate "just" as an eBay PayPal-based auction (read: work-from-home) marketplace.

I don't think the ramifications of Google Checkout will be known for several years, but I do feel that MasterCard and Visa will ultimately be the losers, not eBay.

Posted at 9:04PM on Feb 12th 2007 by Tim

8. It seems recently there's been a lot of discussion about this, however Ryan's right... it's nothing new. Google has been testing different graphical additions for Google Checkout to Adsense for some time now.

Posted at 9:57PM on Feb 12th 2007 by Harry Maugans

9. Checkout sounds great but is restricted to US-based sellers only - although they aren't kind enought to mention that anywhere I could see before many attempts to sign up.

Never had a problem with Paypal though. I'm amazed a financial company hadn't tried to compete with them earlier; it would be better if there was a meaningful competiton to drive down their charges, especially as Ebay is now effectively charging twice on each sale.
Tim

Posted at 3:19AM on Feb 13th 2007 by Tim Watt

10. Checkout isn't going to kill Paypal, it might kill 2CO and similar merchant providers, but it's target is a totally different audience to Paypal, what you'll see is that merchants will offer Paypal + Google Checkout, such as Namecheap now does, but they'll offer Google Checkout as the credit card processing part, Paypal will still be there because end of the day there are far too many people using Paypal and not supporting it can and does result in a drop in custom. As a long term Paypal user, I actively seek out merchants that accept paypal for most of my online spend, be it hosting, domains and what not, and I know I'm not alone.

Posted at 3:44AM on Feb 13th 2007 by Duncan

11. Tried to buy a domain from Google using Checkout. It did not accept my card. Manage to buy using the same card at GoDaddy and "JASON1"

Posted at 9:36AM on Feb 13th 2007 by Kenn Chin

12. Jason,
Agreed, I think it is great that someone is taking on PayPal / EBay. As for eBay's bread and butter, auctions, what is your take on the slightly different approach to free flat rate auctions, that being bartering? Do you think there is a market for it?

Will

Posted at 10:15AM on Feb 13th 2007 by Will

13. Right now, the Checkout icon is probably doing more harm than good. Yes, it's going to increase click-through-rates. But if people are only drawn to the ad because of the icon, they're not going to be good buyers.

99% of people don't have Google checkout accts, most have never even heard of it. I don't advertisers will see any benefit from the icon until Checkout is more widely adapted by consumers.

Until then it will probably only serve to increase the # of unqualified leads that advertisers get.

Posted at 12:39PM on Feb 13th 2007 by Adam Sharp

14. I have had so many problems with paypal lately, so I think it is just good if there is a alternative solution for online payment.

Posted at 11:52AM on Feb 16th 2007 by Manuel

15. Google's Checkout has made online shopping very easy and convenient. I've already bought several items through it and everything went smoothly. I haven't used my account for some time now since I just shifted to Vista. Although I already solved my driver problem courtesy of http://www.radarsync.com/vista, I'm still quite apprehensive of the security issues that the new Microsoft OS have. I hope that Microsoft would categorically state that they have fixed all security issues in their new OS.

Posted at 9:06AM on Feb 19th 2007 by Sally

16. I hope Paypal has a slow painful death.... They deserve it.
Hate is a strong word, but go hand in hand with these 'people'

Posted at 12:33PM on Feb 20th 2007 by ED

17. I hope Google stuff Paypal in the long term, I must admit Google has a much better image than Paypal, everyting I read about Paypal is prodominately negative, where as when I read about Google is is mostly all positive although I'm sure there are people who would disagree with me on that one... I am very much anti-paypal & I have a blog where I would like to invite you to leave commenst & suggestions regarding this 'company' I also list some Paypal & Ebay alternatives to choose from.

http://cqoutseller.blogspot.com/

Posted at 7:23AM on Feb 25th 2007 by ANTI-PAYPAL

18. no man, nobody can take paypal out, now that it processes all of the ebay's transactions

Posted at 5:41PM on Apr 6th 2008 by Debt Consolidation Advirser

19. I think it was a very intelligent move for eBay to buy paypal... will be interesting to see how Google Checkout grows... I like it that the more transactions you make the bigger the discount on adwords. Good move I think.

Posted at 3:00PM on Jul 24th 2008 by London Sightseeing Tours

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