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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?

  • http://www.u-g-h.com Owen

    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 …

  • http://www.bargaineering.com/articles jim

    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.

  • http://www.ustyleit.com Mary

    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

  • http://searchenginetigers.com/2007/03/tips-for-starting-out-in-search-engine.html Simon Heseltine

    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…

  • http://www.fusability.com Greg Scowen

    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?

  • http://www.plumbersurplus.com Ryan Douglas

    “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.

  • http://www.fusability.com Greg Scowen

    Good call Ryan.

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  • http://www.xen.co.za Xen BB

    There is absolutely no need to worry about Google Checkout being a threat to Paypal.

    As a member of its checkout forum I can safely say that anyone thinking of using the system needs to not be taken by the hype and BS theat surrounds Google.

    There is no product back up whatsoever. Google will cancel your account refund money to the customer even if you have proof of despatch without so much as a exact reason why. No warning nor advice or telling what the actual problem is.

    If you have a enquiry FORGET about direct human Google contact. You have no recoarse if anything goeas wrong. you have no back up. All you have is this Lybrinth of usless facts that do not apply to your system. Google never reads the feedback anyway.

    I strongly WARN ANYONE AGAINST USING GOOGLE CHECK OUT.

    To the kind soles who devote their time to solving problems for others on the Checkout forum google should be greatful. Min, big gyph and others really dotry find solutions but in most cases their are few valid answers.

    If anyone is wondering why I am a memeber of the Google checkout forum. Well the answer is sinple. ONCE REGISTERED GOOGLE HAS YOU FOR LIFE. No matter how many times you try to unsubscribe you are ignored.

    Xen BB’s last blog post..Womens Brazilian Bikini