by:
Ross MacIver
PayPal is secure in its domination over the electronic payment industry, at least for now.
Following reports that Google planned to launch a new Net
payment service (nicknamed Google Wallet), Eric Schmidt, CEO of Google, denied that Google would-be be directly competitive with PayPal. He did, however, acknowledge that Google has plans for several type of electronic payment service.
Without revealing any details, National leader stressed
that the Google payment service wish not offer the same sort of “person to person, store-valued payments system” as PayPal provides.
The Net
commerce industry was rampant with rumours of the new Google service following an e-commerce conference hosted by securities firm Piper Jaffray. Speculation that Google Notecase would-be encroach on PayPal territory was reinforced by the appearance of a Gregorian calendar month
Twentieth article in the Wall Street Journal which expressed
that Google was planning an online payment service to vie with PayPal.
PayPal is a unit of eBay and generates just about 25% of total eBay revenue. It is used by consumers for production
a wide variety of Net
purchases. It allows purchasers to use their credit cards without divulging their credit card amount to merchants. PayPal takes a percentage of each group action
and had revenues of $233.1 million in the 1st quarter of this year.
Most of Google’s revenue comes from online advertising and this expansion into online payments was seen by many an in the industry as yet another example of the group action
between the two companies.
Google is a giant in Net
commerce with revenues of $3.2 billion last year. A payment service that competed directly with PayPal would-be be a serious blow to several PayPal and eBay.
Google maintained silence just about the rumours until Schmidt’s comments last Tuesday. Without elaborating, he expressed
that Google’s payment service would-be be an extension of its existing advertising programs.
Just just about the author:
Copyright 2005 by Ross MacIver
This article may be decentralized freely on the Net
or in ezines as long as the resource box and hyperlinks remain intact.
Ross MacIver is the director of Best Online Content. We provide quality content for your web site and offer a full range of design and SEO services.
