RSSGoogle CEO Confirms Payment Service
By Nate Mook and David Worthington | Published June 22, 2005, 10:37 AM
Google CEO Eric Schmidt has acknowledged that his company's Google Payment Corp. subsidiary is engineering an electronic payment system, but shrugged off speculation that it would be competing with eBay's PayPal. Rumors of a planned service peaked over the weekend and sent eBay shares falling early Monday.
"We do not intend to offer a person-to-person, stored-value payments system," Schmidt said in a statement read to reporters. "The payment services we are working on are a natural evolution of Google's existing online products and advertising programs, which today connect millions of consumers and advertisers."
The service would likely integrate with Google's existing payments for advertising on its searches, and with a new Google Video service that will allow consumers to purchase video clips offered by third parties directly through Google. Analysts have suggested payments could also be integrated into Google's Froogle shopping comparison search.
PayPal, on the other hand, offers users the ability to send money to one another while acting as an intermediary. Money is temporarily held in PayPal's account, like a bank, and the company takes a percentage of all transactions. The service has proven a boon to eBay since the auction giant acquired PayPal in March 2002.
Although he refused to provide specifics, Schmidt did hint that Google had innovative plans for the payment service, wherever it may be used. "We believe that e-commerce can be improved and we are working on ways to improve the user experience," he said.
"and sent eBay shares falling" - hhaaha thats funny stuff, shows how much trust and expectation people have for google (me too). I love ebay/paypal and google they are great companies, i expect this means we can see alot more improvements for each in an oncomming battle maybe. TBH i cant see paypal being replaced very quickly but then again i think it might just be like the msn hotmail and google gmail, and just coexist together without massive problems. Google is very good at attracting new users, one of the reasons google is so popular, they can sell there services well and they have great services.
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If you read the article It will only be for Google Services. Not for person to person transactions.
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I think that part was merely wishful thinking.
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I only wish google would release a paypal like service. Paypal is so arrogant and thinks very mighty of themselves ever since ebay bought them. They think like ebay, basically.
Yes, paypal is a great service but they are backed by ebay so they can control alot of things.
Remember when ebay had their own online payment service? They HATED paypal, as was evident that they would only allow a very tiny paypal logo within the auctions. After the purchase? It's paypal preferred now!
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