Google to offer service to rival PayPal

By Derek Sooman on June 20, 2005, 8:01 PM
Google is keen to get its claws into everything Internet right now, and their latest scheme seems like a cracking idea - they want to offer an electronic-payment service to rival eBay's PayPal. Exact details of the forthcoming service are currently not known, but a system extremely similar to PayPal is what is expected.

For Google, based in Mountain View, Calif., a payment service could represent a significant expansion beyond online advertising, which generated 99 percent of its $3.2 billion in revenue last year, the Journal said. Online-payment providers typically take a commission on each transaction.

Depending on the exact details, Google's move could potentially threaten eBay's successful PayPal service, which generated $233.1 million, or 23 percent of eBay's revenue in the first quarter, the newspaper reported.

No word as yet on when we can expect to get this new service, but itís very possible that it will be soon. A name is still not known, but "Google Wallet" seems likely.

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