Google Checkout Penetrating

On June 29th, Google announced their own payment system called Google Checkout. Companies are adopting the payment method in droves. Big online retailers like Buy.com, Starbucks, and bluefly have added Google checkout to their sites. You can checkout the list of retailers here. Who is missing from the list? - Ebay.

Ebay is not supporting Google’s payment processing. They are claiming it is too new. We think they are scared of the impact it will have on PayPal, an eBay Company. Google checkout is not a stored payment system like PayPal, may effect the business to consumer market significantly.

Google is undercutting paypal’s transaction costs. Google Checkout: processing fees are 2% and $0.20 per transaction. PayPal charges 2.9% plus $0.30 per transaction, or for large merchants - rates from 1.9% - 2.5% plus $0.30 per transaction. Another bonus to merchants using Google Checkout — for every $1 they spend on AdWords, they can process $10 in sales for free.