With the recent launch of Google’s own payment processing system, some observers have noted that this may cause the demise of PayPal which is owned by eBay. But while this concept is certainly not true, in the near future anyway, Google Checkout provides more advantages when compared to PayPal. In particular, Google’s strength in online advertising and its reputation as a search engine will make people take notice of their services immediately. Also, affiliated payments will be made easier because of advertising related to visitor’s a search.
Because of these strengths, Google can revolutionize the way consumers buy online by integrating all online activities related to search, advertising, buying, and payment processing. The payment transaction using Google will also be significantly lower when compared to using credit cards for online purchases. There is also a rebate for Google clients who advertise through Google Adwords. All these advantages combined threaten PayPal’s dominance in the online payment processing market at this point.
However, market observers believe that the impact of Google Checkout to PayPal’s revenues will be limited because a large chunk of PayPal’s income comes from eBay sales. It should also be noted that because Google had become such a force to be reckoned with in the online market, Yahoo and eBay formed a partnership to ward-off fight Google’s dominance. This allows advertisers in Yahoo to use PayPal for online payment transactions.
It is definitely easier and cheaper to use Google Checkout because all the convenience you should expect is already provided. You just need to go to Froogle which is Google’s online store, fill your cart with products you want to buy and click on the Google Checkout for the payment processing. This procedure is very much like going to the nearby supermarket and buying the goods except in this case, you do the buying in the convenience of your house.
Despite the apparent strength of Google though, it is still susceptible to fraudsters and hackers. This threat is real as can be seen in the failure of Yahoo, Microsoft, and even Citibank to have a successful online payment processing. Even PayPal itself was bought by eBay because eBay’s payment processing system at the start was a failure. Another concern that is being raised by sellers is the fact that Google will have all the access to their database and consumer behavior. In addition, it is also inconvenient for some clients to use Google Checkout when they are already satisfied with their current processor so it will take time before Google Checkout becomes a real threat to PayPal.
Despite the setbacks of the Google Checkout system, as early as now, many observers believe that this will be a success because it is beneficial to both online buyers and sellers. For example, it is advantageous for buyers to use Google Checkout because this system can track multiple purchases from different sellers. Google Checkout can also track all your payment history; store your credit card information, and your shipping information. There is no need to worry that your security will be compromised though because Google will ensure that your security is protected.
