Google has confirmed that it is working on a payment system. Google is reported to have recruited online retailers to test GBuy. Google is not planning to offer a “person-to-person, stored-value payments system” similar to PayPal, according to Google CEO Mr. Schmidt.


Google has confirmed that it is working on a payment system. Google is reported to have recruited online retailers to test GBuy. Google is not planning to offer a “person-to-person, stored-value payments system” similar to PayPal, according to Google CEO Mr. Schmidt.

“Google has recruited online retailers to test GBuy, according to one person briefed on the service. GBuy will feature an icon posted alongside the paid-search ads of merchants, which Google hopes will tempt consumers to click on the ads, says this person. GBuy will also let consumers store their credit-card information on Google”. [source]

Mr. Jordan, who is president of eBay Inc.’s PayPal online-payments unit, has been monitoring information related to Google payment system through blogs, news and customer reports.

Mr. Jordan said, “It’s a very legitimate competitive threat. It’s hard not to pay attention to what Google is doing”. [source]

PayPal has generated 23% of eBay’s total $1.3 billion quarterly revenue.

PayPal’s revenue reached $304.4 million in the fourth quarter. This is an increase of 48% compared with last year.

 

 

 

 

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