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Google won't compete with Paypal |
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Written by Administrator
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Wednesday, 22 June 2005 |
Recent reports that Search Leader Google is to set up
an electronic payment operation to compete with EBay's
Paypal have been denied by the former's CEO Eric
Schmidt.
Although a service is to go ahead, it will be
different in essence to the Paypal system. The highly
successful Paypal was bought by EBay in 2003 for $1.3
billion to make the use of the on-line auction more
user friendly and drive expansion - it operates almost
like an electronic bank. Payments are collected by
credit and debit cards and recipients can either
"cash" payments by having money downloaded into bank
accounts or hold them on deposit to be spent later.
Paypal currently has over 71 million accounts and
claim that they can service anybody with an e-mail
address in 45 countries.
"We do not intend to offer a person-to-person,
stored-value payments system," Schmidt said during an
interview with The Associated Press.
The Google plan has been heavily discussed for the
last several days with reports in most relevant
publications up to the Wall Street Journal. The
prospects of a head-to-head rivalry between Google and
one its major advertising supporters obviously created
enormous interest and it was suggested that Paypal and
therefore EBay profits would be effected - EBay stock
has fallen by 3 percent so far this week on the fears
and Google's have gained 2.7 percent on the
expectation!
"The payment services we are working on are a natural
evolution of Google's existing online products and
advertising programs which today connect millions of
consumers and advertisers," Schmidt said.
American Technology Research analyst David Edwards
believes the Google's service will be tied to its
shopping comparison option, Froogle. The company also
plans to allow the viewing of online videos prompting
some other observers to predict the service will be
designed to sell content found through its search engine.
Reuben Dunn
Jump2Top.Com
Search Engine Optimization Company |
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Last Updated ( Wednesday, 29 June 2005 )
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