eBay Bans Google Checkout

by Shankar Gupta
Media Daily News

Friday, Jul 7, 2006 6:00 AM ET

http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticle&art_aid=45298


THE RIVALRY BETWEEN ONLINE GIANTS eBay and Google heated up this week, as 
eBay declared it won't accept electronic payments made from Google's new 
online payment system, Google Checkout.

eBay currently owns one of the leaders in the online payments space, 
PayPal--and offers that service to all of its buyers and sellers in its 
online marketplace. Since rumors of a Google online payment service 
surfaced a year ago, analysts have speculated that the service would likely 
pose a threat to PayPal.

Catherine England, a spokeswoman for eBay, said simply that the company 
won't accept Google Checkout because the newly launched system is largely 
untested in the marketplace.

"One of those criteria for inclusion is having a proven track record for 
service, and we just don't have that information yet with Google Checkout," 
England said. She added that eBay might allow the service in the future.

But Google said the service had undergone thorough testing. "Billing and 
payments have historically been a core part of Google's advertising 
programs and online services. Google Checkout is a natural extension of 
this history," a spokeswoman for the search giant said in an e-mail. "We 
rigorously tested the service with external merchants before launching and 
have used this same service to process Google Video, Google Earth, Google 
Base, and Google Store transactions for months."


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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