Google set to take on PayPal?

By Justin Mann on February 7, 2006, 12:53 PM
Google is starting to also earn the ire of PayPal, adding to the list of feet Google is stepping on as they offer more services. Gbuy, a system similar to PayPal that facilitates 3rd party transfers of money securely, is what PayPal is concerned about.

”This is where Google has just the right mix to be able to challenge PayPal. Google has search, it has ads, it has presence, it has Froogle. In fact, it has all the necessary ingredients to pose such a big threat to PayPal that Jeff Jordan, PayPal's president, requested PayPal and eBay employees to monitor and watch for any news of Google's development of a service it calls GBuy.“
PayPal really has no rivals currently, being de facto method of payment online, overtaking many others when eBay purchased the company. They have received a lot of flak over the past three years, for poor customer service to the point where lawsuits were filed. Gbuy looks to move in on that exact territory, and this is one of those cases where competition is a good thing – a single provider of one service is rarely productive. From a consumer perspective, this is only a good thing, and we may see both services come out wonderfully.

User Comments: 15

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sngx1275 said:
I'm not too sure I like this idea of Google taking over all sorts of areas. Google Earth is about the only decent thing they have outside of gmail and their search. Perhaps I'm forgetting one or 2. Picasa is great, but I think they bought that off someone else.I have a feeling google is going to crash and burn badly in the next year or 2. They need to spin off some companies, they got their hands involved in too many things to continue to provide good service in them.I read a lot of case studies when I was in grad school, and it seems like Google is going the opposite direction of a lot of the companies that have achieved long term success.
buttus said:
Actually I think this is a great move. It seems to be a natural side turn in Googles business model and can certainly take advantage of their already existing infrastructure.Next will be eBay!!!!
JMMD said:
I'm happy with paypal. It's going to take a lot to get me to move my account to google. Nothing that a few shares of google stock wouldn't fix.
mastronaut said:
Gbay sounds like an awesome idea. Ebay was cool before everyone and their brother got a piece and ruined it for the late comers.
barfarf said:
sngx1275 what was your degree in? Now you got me worried i just invest in google after their dip they had recently. It does seem google is all over the place that could lead to confusion and loss of profit but so is Microsoft and they are a very successful company. Paypal has an monopoly. They have no real competitor and its time they do. I bet this is one area that google will do well in since people been wanting a paypal alternative for a long time. The question is will ebay allow the service to use on their site? If you remember ebay had a similar service called BidPay and finally gave up trying to compete and brought out paypal.
vigilante said:
This could be interresting. I mean, if Google finds a clever way to mix all their services into one, it could be big. I'm not to quick to leave Paypal either, I like it. Especially free cross-country transfers.But if Google somehow links their services in such a way to make it obvious that having this service will benefit greatly, I may step in.However, I don't like jumping onto any "new" system. Let them work out the bugs for a year or so and see how it takes.
Vaulden said:
Competition is never a bad thing. Even if GBuy doesn't take off, maybe it will force PayPal to make some improvements. Granted I myself have not had problems with PayPal but I know a few that have.
cyrax said:
Since paypal is getting blacklisted in alot of organisations, i think Google had a winner idea on their hands.
sngx1275 said:
[b]Originally posted by barfarf:[/b][quote]sngx1275 what was your degree in? Now you got me worried i just invest in google after their dip they had recently. It does seem google is all over the place that could lead to confusion and loss of profit but so is Microsoft and they are a very successful company. [/quote]Got my Masters in Engineering Management. Shoot me an IM (IM is listed with my forum profile) if you want to discuss this a bit more, and I can pull out some specific examples.
MonkeyMan said:
Oh man, watch out paypal, I think your days are over. Man Google just can't get enough can they? I wonder whats next?
Need_a_Dell said:
Is it possible that Google will become the evil corporation of the future that will take over the world?? It seems that with every passing week, I hear about a new feature that Google is adding to their future line-up. Hopefully Google will continue to expand, but will skimp on the "evil" part.
nathanskywalker said:
This could be bad. If someone finds a way to really exploit google, there goes security. And if google gets to powerful, they will just becom another monopoly. On this bright side. This could be very good. While there may be problems, google seems to be quite secure,and definently the best search engine. So, if you want paypal to take a few steps backwards, this is good. If you like paypall, and don't want to see google take anymore ground ( i don't know why you would want taht), than this is bad. But for now google seems to be doing an excellent job of managing their affairs. So let's rock ey?
Race said:
It surprises me somewhat with PayPal, with the mention of "poor customer service to the point of lawsuits". I've had a flawless experience with them for years.Anyway, you can bet that Paypal is not sitting idly by while their employees monitor blogs and news on Gbuy.From what I've read about Jeff Jordan, he has that 'bring it on' attitude when it comes to business challenges.Just the possibility of GBuy should have PayPal improving all aspects of their service to both attract new customers and keep them (since this is about all that they can do).As far as Google is concerned.....for them to maintain the torrid growth rates they've had up to this point, and thus maintain shareholder value (and keep their stock from taking a dive), they have to expand into different areas, and be successful doing it.So for now I have to agree with Justin that this is great for the consumer.One thing that would concern me.......and that's if Google were to offer this service for free, and completely undercut PayPal. I would then begin to wonder if, in fact, a monster has been created. (They're already making enemies in the business world for some of their tactics)Of course this is pre-mature, but for those who think Microsoft is about Google controlling just about everything to do with your on-line experience?
Masque said:
More competition can only be good for the masses....better prices...tightened security. Now we need them to jump in with both feet to compete directly with EBay (I know....won't be easy). I too haven't had any real issues with Paypal....but I've never had a disput either (knock on wood) and hopefully won't. Yes Google seems to be getting larger, but remember that most likely, not everything they delve in will be profitable or stick around forever. They're testing the waters.
cookiedude said:
Excellent news. As a seller on ebay i am sick of being charged over the odds by PayPal when receiving payment, its basically Ebay charging you twice for the same thing, especially as ebay are now converting solely to secire online payment methods!!Bring on Gbuy
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