Axiom Home Page Forums General Discussion The Water Cooler Google to take on PayPal.....................

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USA TODAY:

Report: Google preparing to challenge PayPal

MOUNTAIN VIEW, Calif. (AP) — Online search-engine leader Google Inc. is preparing to introduce an electronic payment system later this year in a move that would pose a financial threat to one of its biggest advertisers, Internet auctioneer eBay Inc.
The Wall Street Journal reported Google's plans on its Web site late Friday, citing sources familiar with the Mountain View-based company's plans. The Journal did not provide any details about Google's strategy.

A Google spokesman declined to comment on the report.

The likelihood of Google rolling out an online payment system to rival eBay's popular PayPal service became a hot topic during an Internet conference hosted Thursday by Piper Jaffray.

"It could be a pretty big negative for eBay if it happens," said Piper Jaffray analyst Safa Rashtchy, who follows Google as well as the Web's leading auction site.

PayPal accounted for $233.1 million, or 23%, of eBay's revenue during the first quarter.

San Jose-based eBay bought PayPal for $1.3 billion in 2002. The payment service makes money by collecting a fee from the transactions that it helps complete. The electronic accounts are funded by credit cards or banking account transfers.

Expanding into online payments might make Google less dependent on advertising, which accounted for nearly all of its first-quarter revenue of $1.26 billion. The merchants who run auctions on eBay are major buyers of Google's ads, which appear alongside search results.

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Funny, last night I heard this wasn't going to happen... Man, this story is spinning like a top.

Yeah I also heard that it was a no go...................which usually means it's a go but they don't want anyone to know!

That's very true... Well, more competition is usually good.

True. More competition is usually good and so far it seems google has stuck to their "Don't be evil" motto. Hopefully, that trend will continue. I'm going to feel awful silly hooking for pimpdaddy-google if it turns out they are soul suckers.

jr

I think google will ALWAYS keep that philosophy as long the original founders are around (Brin/Page). Same thing with HP, when the owners were around, everyone knew and respected the company. When Hewlitt and Packard both passed so did the company's values and everything they stood for. The company did a total 180 when Carly took over and drove what was left of HP into the ground. But I digress...I'm VERY happy google is (possibly) entering this market as I've had a friend scammed from Paypal and heard tons of horror stories.

Go to Paypalsucks for more into.