| Search Engine Google to Compete with Paypal? |
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| Written by Administrator | |
| Monday, 20 June 2005 | |
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The Wall Street Journal reports that Search Engine
leader Google is planning an electronic payment system
for later in the year. Such a move would have a major
financial impact on one of its main advertising
supporters, Internet Auction site EBay.
During the first quarter, almost all of Google's $126 billion revenue came from advertising and a good proportion of that came from merchants who advertise their goods on the Google adwords entries that appear alongside the search results. EBay bought Paypal for $1.3 billion in 2002 and has grown it to a customer count of 71 million. Income from Paypal accounted for $233.1 million last year - 23 percent of total. The payment service profits from levying fees from the transactions that it helps to complete. The electronic accounts are funded by credit cards or banking account transfers. Google's management wouldn't comment on the reports but it might be a logical move. Such a rival to Paypal and its less significant rivals like Stormpay and E-Gold would reduce the Search operators dependence on advertising revenue. Reuben Dunn |
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