PayPal Deluding Themselves Over Google Checkout Threat?

Tuesday, March 27th, 2007 by Andy Beal

PayPal Deluding Themselves Over Google Checkout Threat?

CNET has an interview with PayPal Chief Technology Officer Scott Thompson. It’s mostly about PayPal’s technology and anti-phishing tactics, but does have one question on Google Checkout.

Can you comment on the competition you might be seeing from Google Checkout? Have you seen any loss of market share or revenue?
Thompson: …as it relates to Google Checkout, where as you would expect we are very aware of what they are doing, we don’t think they are in a payment system business. We think they are specifically in a check-out business, and there is quite a bit difference between checkouts and payments. I would argue that we have such a lead in the business of global payments that if somebody wants to chase after us a little bit, I think they are going to realize it’s hard to do, and I think they will fully appreciate and understand the head-start we have. Nobody here is overly confident, but I think what we need to do is have a strategy and focus on that and not on any competition.

Er, you might need to fire the people that are keeping an eye on Google Checkout for you. They absolutely are in the “payment system business.” I use Google checkout to send out invoices for consulting services to anyone that wants to pay via credit card - last time I checked, that wasn’t a “check-out” transaction. I used to use PayPal, but why would I do that, now that GCheckout offers payment processing for free?

Ironically, Google doesn’t believe it’s competing with PayPal either!!! I wonder how many times they’ll have to tread on each others’ toes, before they realize they are competitors?

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9 comments on “PayPal Deluding Themselves Over Google Checkout Threat?”

Owen Says:

March 27th, 2007 at 9:49 am

Hmm, hadn’t used Google Checkout before, but decided to give it a spin after reading your post. Unfortunately it only seems to be available for sellers in the U.S. so not much use to me just yet. Maybe in the future …
jim Says:

March 27th, 2007 at 3:23 pm

I do the same exact thing, I send invoices (in fact in the latest survey they sent out, one suggestion I had was to move the “send an invoice” link from behind the Settings tab) to people because Checkout is fee-free until the end of the year. It’s definitely a payment system… I just wonder how many small timers like me are going to stick after the freebie goes away.
Mary Says:

March 27th, 2007 at 3:29 pm

are these companies for real? they must be kidding that they are not competitors…I have used both and I definitely think of one as a substitute of the other…maybe they are just hoping each will believe their nonsense
Simon Heseltine Says:

March 27th, 2007 at 4:15 pm

Has there been one article about Google Checkout that hasn’t mentioned / compared them to PayPal? Not many, that would lead me to think that there may be some overlap there…
Greg Scowen Says:

March 28th, 2007 at 7:11 am

Isn’t denial a beautiful thing? This would be like Coke and Pepsi denying they were competitors.

Why on earth would they really do this? Surely it can’t be that they don’t realize it, so what are they denying exactly? What event are they avoiding?
Ryan Douglas Says:

March 28th, 2007 at 12:43 pm

“Er, you might need to fire the people that are keeping an eye on Google Checkout for you.”- Andy Beal

I wonder if they are hiring…I can see the competition but I’d rather work for Google than Paypal anyday.
Greg Scowen Says:

March 28th, 2007 at 3:00 pm

Good call Ryan.
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