Print 26 comment(s) - last by leousb.. on Jun 13 at 1:41 PM

Stiff competition coming for the eBay/Yahoo partnership

DailyTech previously reported that Google was developing an online payment system called "GBuy." The system is one of many systems under development from Google, to make it easier for online users to pay for items they buy through a trusted source, in this case, Google. However, news is out this week that GBuy is turning out to be much more than a PayPal competitor -- Google has plans to turn it into an eBay competitor as well.

According to several reports circulating around, Google will be launching its GBuy service later this month, presumably on the 28th. Google has not been speaking much about GBuy since the first few details of it were released to the public. Other Google services such as Calendar, Finance and Spreadsheet have been taking the lime light.

Analysts had expected that GBuy was going to launch soon primarily because earlier this year, eBay and Yahoo announced an agreement to co-operate together, to improve each other's traffic. Google is expected to leverage its AdSense and AdWords programs into GBuy in a similar fashion that it has done with GMail.

Some reports and analysts suggest that judging by Google's history; it may not charge any fees to post a sale on its service. This would quickly gain Google a client base that is accustomed to Google's "free and everywhere" model. Whether or not that this mode will last for GBuy however, remains to be seen.

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By dnd728 on 6/12/2006 7:25:09 PM , Rating: 2
Things like CC payments would always cost. Mastercard isn't google.
And besides, google would still need something to compensate for fraud losses...

RE: Unfortunately
By segagenesis on 6/12/2006 8:56:50 PM , Rating: 2
I don't think many eBayer types will care as long as someone comes in and gives eBay some real competition this time. I just hope they don't make the same mistakes at the same time. How Paypal is still not regulated like a normal bank is beyond all logic and comprehension to me.

RE: Unfortunately
By Pirks on 6/12/2006 9:27:26 PM , Rating: 1
How Paypal is still not regulated like a normal bank is beyond all logic and comprehension to me.
Possible explanation why this happens: nobody keeps serious amount of money on his/her PayPal account, this service is used to quickly move money between bank accounts of buyers and sellers, hence it is a transient thing, hence noone thinks about equating it to a real bank where you can have your large pile of $$$ in relative safety. To me a BANK and an ELECTRONIC MONEY TRANSFER SERVICE are very different things. Therefore a different treatment, so don't expect PayPal to become regulated like your bank where you keep your savings. UNLESS PayPal introduces high interest rate savings account similar to ING Direct - but this is totally different thing, they don't seem to be interested in that just yet.

RE: Unfortunately
By slashbinslashbash on 6/13/2006 1:04:01 AM , Rating: 2
I'm getting 4.73% on my PayPal balance as a money-market account (free upgrade to my PayPal account.... can't remember when I activated it... I think I got an e-mail about it). Which is about 0.4% higher than my ING Direct account. I'm not a big eBayer, but I recently sold a PC there and I'm keeping that couple hundred bucks in PayPal as long as it gets that rate! (or until I spend that much on eBay...) So they are DEFINITELY trying to get people to keep larger sums on PayPal for longer periods of time.

RE: Unfortunately
By Pirks on 6/13/2006 2:20:22 AM , Rating: 1
I'm getting 4.73% on my PayPal balance as a money-market account
Doh, must be American only thing - nothing for Canada, as usual.

RE: Unfortunately
By TheDoc9 on 6/13/2006 10:20:12 AM , Rating: 2
Also don't forget that if they became a bank, which I'm sure they've tried, they could create money (for every dollar a bank recieves it can loan 10, thus creating 9 more dollars). The last thing we want is for those greedy bastards to get even richer.

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