Google rivals PayPal with Checkout service
- Added:
- Jun 26, 2006
Google Checkout lets online retailers add a checkout to their sites that can be used in addition to other options such as PayPal or a merchant's own pay system.
The service stores names, shipping and credit card information and negates the need for consumers to resubmit that data with each purchase. Users will be shown in search results next to a shopping cart icon.
The Checkout service, which was previously referred to by some analysts as Gbuy or Google Wallet, is currently only available in the US.
Google added that it is responsible for processing the credit card payments and keeping data safe. It will take a 2% share of all sales made from merchants sales made through the Checkout service, plus 20 cents per transaction.
As an added incentive to drive subscribers to its AdWords system, Google said for every dollar merchants spend on advertising, they will get $10 off the cost of processing orders they receive.
However, the service is not in direct competition with market leader PayPal, as Checkout acts solely as a transferring house for credit card payments. By contrast, Paypal gives users the option to set up their own accounts to pay into, as well as offering credit card payments.
US-based retailers Backcountry.com, Starbucks, Levi Strauss & Co. and underwear seller Jockey are among the first to try Checkout.