Google plans pay service to rival PayPal - WSJ

Reuters ^ | June 17, 2005

[HAL9000]

NEW YORK, June 17 (Reuters) - Google Inc. this year plans to offer an electronic-payment service that could help the Internet-search company diversify its revenue and may heighten competition with eBay Inc.'s PayPal unit, the Wall Street Journal reported on Friday.

Exact details of the search company's planned service are not known, the report said, but quoted people familiar with the matter as saying it could have similarities with PayPal, which allows consumers to pay for purchases on Web sites by funding electronic-payment accounts from their credit cards or checking accounts.

A Google spokesperson contacted by Reuters declined comment.

For Google, based in Mountain View, Calif., a payment service could represent a significant expansion beyond online advertising, which generated 99 percent of its $3.2 billion in revenue last year, the Journal said. Online-payment providers typically take a commission on each transaction.

Depending on the exact details, Google's move could potentially threaten eBay's successful PayPal service, which generated $233.1 million, or 23 percent of eBay's revenue in the first quarter, the newspaper reported.

Rumors about a new Google payment service escalated following a panel discussion at a Piper Jaffray Internet conference on Thursday, the newspaper said.

At the conference, Scot Wingo, chief executive of ChannelAdvisor, a Morrisville, N.C. e-commerce consulting firm, said he believed the payment service would be launched soon, according to the newspaper.

In an interview, Wingo said he based his statement on questions from retailers with which his company works, according to the Journal.

Wingo said the retailers have asked him whether ChannelAdvisor would support the service, which some believe goes by the code name Google Wallet.

[Ernest_at_the_Beach]

Man, Google is on a ROLL!

[sharktrager]

I wonder if they are behind GreenZap?

[Moonman62]

I wonder if they can do it better than Yahoo or Microsoft.

[Migraine]

Competition is great! But they're going to have to go some to beat what PayPal does -- that is a tremendous online banking service.

[spanalot]

I suspect it will be as bad as PainPal

All this stuff is smoke and mirrors to get the buyer to assume the cost for fraud.

Anyone that allows access to their checking accont deserves to have it squandered

[BigSkyFreeper]

Competition is great! But they're going to have to go some to beat what PayPal does -- that is a tremendous online banking service.

If they can build customer loyalty and trust, they'll kick PayPal right in the keister. I've read and heard some real horror stories with customers and PayPal. Sometimes, it's almost as if PayPal don't give a rip about their own customer base.

[isthisnickcool]

I've been messing with a product they have called google earth plus. Something they purchased that was previously called keyhole. It's pretty cool.

I've always found it interesting that google makes a lot of it's living off of other people's property. Someday someone may make a case in court about that. In the meantime they have piles of cash to play with to their little liberal hearts content.

[softwarecreator]

$25 free to join

Am I missing something?

[BigSkyFreeper]

Right, so if I click your banner, you get a commission. Nuh-uh, no thanks. ;)

[BigSkyFreeper]

Yeah, he gets $25 when you join.

[kingu]

$25? Where on earth would you find anyone willing to give you anything for not $25 but 25 Greenzip.com bucks that can be used for nothing on greenzap.com, the people issuing this 'credit.'

http://www.greenzapscam.com/

[kingu]

Am I missing something?

Yeah, that's 25 greenzap.com bucks that can be used to, umm, I don't think anyone's yet identified what the greenzap.com dollars can be used for.

[softwarecreator]

I read the articles supplied with your link.   Pretty shady outfit.  I'm kinda surprised that he posted it.  I've seen him around on these threads for a while and he seems all right.  Oh well, I guess some people will do anything for some GreenZip Dollars =)

[softwarecreator]

Well, I guess you learn something new every day here at the FP. I had never heard of them before.

[technochick99]

I think a lot of people who sell on ebay will take it right away. All those commissions to a single coporate structure hurts after awhile.

[Cate]

I think I am the ONLY person on this earth that thinks Paypal is a cumbersome system. I've used it twice and I was weary by the time I got done.

[Lokibob]

600+ absolutely flawless transactions on paypal. Twice, paypal froze a small amount of my account while they invistigated an alleged credit card problem, and both were cleared in 48 hours.

It would take a lot for me to change from paypal.

[tubebender]

Anyone that allows access to their checking accont deserves to have it squandered

I started to sign up with Pay Pal but when they asked me for my checking account I said no way. I just wanted a CC account for eBay purchases...

[kingu]

It is a good idea, and ebay could use the competition. WorldPay positioned itself in that mold for a bit, but instead went towards merchant needs. This one is just being run by someone who appears to have good ideas, and horrible follow through.

[AndyTheBear]

I've been messing with a product they have called google earth plus. Something they purchased that was previously called keyhole. It's pretty cool.

I must agree.

I've always found it interesting that google makes a lot of it's living off of other people's property. Someday someone may make a case in court about that. In the meantime they have piles of cash to play with to their little liberal hearts content.

I joined the Keyhole group in Google about a month and a half ago. Not all of us are liberals.

[kingu]

I luv on my Google Earth Plus. Best $29.95 I've ever spent.

[Flyer]

600+ absolutely flawless transactions on paypal.

I've used PayPal for 5 years this month without a problem.

One can find horror stories for any credit card or payment system. Stuff happens.

And, I'm earning 3% on my PayPal balance and get a 1.5% rebate when I use my PayPal debit card.

[softwarecreator]

I would agree that eBay could use the competition.    That would be good for the consumers of course.  The link I saw about the other one, GreenZap, seemed to show a company that was out to rip people off.

[isthisnickcool]

I joined the Keyhole group in Google about a month and a half ago. Not all of us are liberals.

I was not referring to keyhole. google makes a lot of money off of other peoples web pages. Someday someone may make a case that google does not have the right to use other people's property they way they do.

[Flyer]

Any web site can opt out of Google's listings.

[AndyTheBear]

I was not referring to keyhole. google makes a lot of money off of other peoples web pages. Someday someone may make a case that google does not have the right to use other people's property they way they do.

The Keyhole group are became Google employees and believe me, you'll hear no complaints from anybody on how Google treats their employees.

The Keyhole group is now based in the main campus (Mountain View, CA), which is like a country club for engineers. The free food is always excellent (we had American Iron Chef Mario Batali as a guest chef last month), the message chairs and espresso machines are nice. And the Keyhole group has been very nicely supported since they got here (including hiring engineers like me to help them).

Its a classic case of win-win. I would encourage any Freeper engineers to look into working for Google (besides we could use a better conservative to liberal ratio).

[AndyTheBear]

...group are became Google employees...

...group became Google employees...

[mercy]

It'd be nice if they would require a bond or a credit card on file and guarantee all transactions. That's the problem with paypal. They don't do squat for either the buyer or seller in case there is a problem. All they do is transfer the money and take their 3%.

[mercy]

Just open an extra checking account and don't keep much money in it. If one buys and sells on ebay ( and you are silly if you don't) it is a necessity. I've sold thousands of dollars worth of stuff that would have otherwise have just been cluttering up my garage.

I've also bouth thousands worth of great photographic equipment at about 1/3rd of retail with no problems.

[South40]

http://www.paypalsucks.com

[South40]

I suspect it will be as bad as PainPal All this stuff is smoke and mirrors to get the buyer to assume the cost for fraud.

Spot on! The PayPal TOS definitely does not protect its users. Nor does the so-called Seller Protection Policy. I know, I learned the hard way.

[packrat35]

I used to think the same thing, but I've gotten burned twice in the past 2 months. PayPal was no help and I got screwed. I really hope a true alternate service comes in. I'm not saying I will drop PayPal but I would like other options.

[Lokibob]

As an Ebay seller, I use endicia (endicia.com) to do my postage (printing and insurance) and record keeping for what has been mailed. Paypal accepts endicias records almost above the USPS records in disputes. If you follow paypals rules (delivery confirmation on everything) and keep track of the DC, disputes are a simple matter.

Twice, ripoff artists have claimed that they didn't receive their items. I had proof they did (DC), and paypal upheld my claim. I then went to the USPS, asked them for USPS form 1510 (undelivered or rifled mail form) which sends the USPS Postal Inspectors after the recipient. A visit from those folks, and I never heard from the person again.

BTW, endicias insurance is 50 cents/ package, 1/3 the cost of USPS insurance. endicia is a great company, customer service is the best I have ever seen. I called them on a credit card problem (I thought I was being double billed for a purchase), and the customer service person could not solve it immediately. His supervisor was busy, and he asked if they could call me back in 45 mins. I thought "YA, right" but agreed. 45 minutes, to the second, the supervisor and he were on the phone to me, and we ironed out the problem (the problem was me, BTW, I didn't notice that they had credited my account 2 days later).

As an EBAY buyer, any item $200 or more, I use an escrow service. I think you are foolish if you don't.

[spanalot]

"The PayPal TOS definitely does not protect its users. Nor does the so-called Seller Protection Policy. I know, I learned the hard way."

I bought the 2nd of 5 laptops - seller had a legit name but was completely bogus. Ebay and Paynpal shut him down for the 3rd buyer but Paynpal said my order had already processed and that the money was due but they would be happy to help me "prosecute "

I said FU and cancelled the CC I used to set up Paynpal.