Following reports that Google planned to launch a advanced Internet payment service (nicknamed Google Notecase), 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 action the selfsame sort of person to person, store-valued payments system as PayPal provides.
The Internet commerce industry was rampant with rumours of the advanced Google service following an e-commerce conference hosted by securities firm Piper Jaffray. Speculation that Google Notecase would encroach on PayPal state was reinforced by the appearance of a June 20th article in the Wall Street Statement 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 manufacture a wide array of Internet purchases. It allows purchasers to statement 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 aboriginal quarter of this year.
Most of Googles revenue comes from online advertising and this expansion into online payments was seen by abounding in the industry as yet another archetype 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 austere blow to both PayPal and eBay.
Google maintained silence about the rumours until Schmidts comments last Tuesday. Without elaborating, he stated that Googles payment service would be an extension of its existing advertising programs.
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Copyright 2005 by Ross MacIver
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Originall posted January 12, 2012