Watch it PayPal - Here Comes GBuy!

PayPal is a market leader with about 25% of the market share has invested heavily in Online security measures and coming out with many new tools. It would be interesting to watch the new market share once GBuy comes.

Touted as competition to PayPal, Google is rumored to be making move to enter online payment system, GBuy, since last fall. GBuy would have easy functionality. Just after clicking "Buy" button, credit card information would be entered and payment would be made to sellers.

With many payable services as AdWords, AdSense, Google Video, Google Earth etc, and with client base from more than 65 countries and with business exceeding $11 billion in over 48 currencies, it does make financial sense for Google to enter this segment. EBay registered significant increased sales volume after it acquired PayPal in 2002; it would be difficult to presume why GBuy would not do similar wonders for Google Base. GBuy would add payment functionality while buying Google services as Google Video, Google Earth, Google Store etc. Google has recruited some online retailers to test the system. Though, domain has been reliably bought by Google, Google is not coming on record with any announcements on this.

Fee Structure

Google is yet to announce its fee structure to the seller. Given the track record of implementing its products and strategies, it should be quite competitive and having some innovative features.

How would it fare?

Google is a trusted name. Despite popularity of IE, record numbers have downloaded FireFox browser, just removal from Google listing can cause business to drop by about 30%, and PayPal CEO rightly observed that it would be hard not to pay attention what Google is doing.

GBuy may not be as smooth start as GMail. Even GMail had initial problems and is still in beta despite more than a year. Here money is involved. PayPal, may have a large dissatisfied customers, still is the industry leader with about 25% market share in online payments and customer base of 96 million accounts. PayPal may not be most competitive option but most popular one. Last year, it registered more than 45% increase in revenue base. At the end, PayPal has to be reckoned with as a tough competitor; at least in the initial period. To strengthen its anti fraud checks, PayPal has also invested heavily by taking over Verisign Inc.'s payment technology unit for $370 million. PayPal is also reportedly working on tools to attract new customers. It would also be worth watching how Google handles "charge back" issues, which is a big issue in this industry.

Marketplace has seen the power of Google and difficulty of doing business without it, be it AdSense, or Google Earth. When a US based Company Data Recovery Group was removed from Google's listing, it witnessed 30% drop in business.

Google is trusted favorite of online community. Despite the popularity of Internet Explorer, large numbers of people have downloaded FireFox through Google link. Google has proved itself many times in the past to create new products and services and has earned reputation for friendly brand and it remains to be seen why with GBuy, it would not create electronic direct marketing for masses.

For detractors, Google is a favorite whipping boy. GMail, since its launch has been coming under fire from many groups including international privacy rights group. They allege, Google computers scan the keywords in the mail to deliver targeted ads.

In the end, it would be hard to disagree with Mr. Jordan, CEO PayPal that it would be hard not to pay attention what Google is doing.





Navitagion Main Page Links Payment Systems 2CheckOut Charge.Com ChronoPay GBuy (Google) MoneyBookers PayPal StormPay WorldPay Sell Online Froogle Windows Live Expo Google Base eBay <a href="http://www.charge.com/banners/click.php?webma417" target="_blank"><img src="http://www.charge.com/banners/120x60_3.gif" width="120" height="60" border="0" alt="Become a Credit Card Merchant"></a>		Watch it PayPal - Here Comes GBuy! PayPal is a market leader with about 25% of the market share has invested heavily in Online security measures and coming out with many new tools. It would be interesting to watch the new market share once GBuy comes. Touted as competition to PayPal, Google is rumored to be making move to enter online payment system, GBuy, since last fall. GBuy would have easy functionality. Just after clicking "Buy" button, credit card information would be entered and payment would be made to sellers. With many payable services as AdWords, AdSense, Google Video, Google Earth etc, and with client base from more than 65 countries and with business exceeding $11 billion in over 48 currencies, it does make financial sense for Google to enter this segment. EBay registered significant increased sales volume after it acquired PayPal in 2002; it would be difficult to presume why GBuy would not do similar wonders for Google Base. GBuy would add payment functionality while buying Google services as Google Video, Google Earth, Google Store etc. Google has recruited some online retailers to test the system. Though, domain has been reliably bought by Google, Google is not coming on record with any announcements on this. Fee Structure Google is yet to announce its fee structure to the seller. Given the track record of implementing its products and strategies, it should be quite competitive and having some innovative features. How would it fare? Google is a trusted name. Despite popularity of IE, record numbers have downloaded FireFox browser, just removal from Google listing can cause business to drop by about 30%, and PayPal CEO rightly observed that it would be hard not to pay attention what Google is doing. GBuy may not be as smooth start as GMail. Even GMail had initial problems and is still in beta despite more than a year. Here money is involved. PayPal, may have a large dissatisfied customers, still is the industry leader with about 25% market share in online payments and customer base of 96 million accounts. PayPal may not be most competitive option but most popular one. Last year, it registered more than 45% increase in revenue base. At the end, PayPal has to be reckoned with as a tough competitor; at least in the initial period. To strengthen its anti fraud checks, PayPal has also invested heavily by taking over Verisign Inc.'s payment technology unit for $370 million. PayPal is also reportedly working on tools to attract new customers. It would also be worth watching how Google handles "charge back" issues, which is a big issue in this industry. Marketplace has seen the power of Google and difficulty of doing business without it, be it AdSense, or Google Earth. When a US based Company Data Recovery Group was removed from Google's listing, it witnessed 30% drop in business. Google is trusted favorite of online community. Despite the popularity of Internet Explorer, large numbers of people have downloaded FireFox through Google link. Google has proved itself many times in the past to create new products and services and has earned reputation for friendly brand and it remains to be seen why with GBuy, it would not create electronic direct marketing for masses. For detractors, Google is a favorite whipping boy. GMail, since its launch has been coming under fire from many groups including international privacy rights group. They allege, Google computers scan the keywords in the mail to deliver targeted ads. In the end, it would be hard to disagree with Mr. Jordan, CEO PayPal that it would be hard not to pay attention what Google is doing. Are you a victim of credit card processor? Take these initial steps.