Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • IT Management

    Electronic Wallet Makes Sense for Google

    By
    John Pallatto
    -
    June 20, 2005
    Share
    Facebook
    Twitter
    Linkedin

      It makes sense that Google would introduce an electronic-payment service that will make it easier for customers to buy and sell goods through in Web search, advertising and market portals.

      But it doesnt necessarily follow that Googles payment service will present a serious near term competitive challenge to PayPal electronic payment system that is a virtual requirement for anyone buying and selling goods on eBays auction site.

      However, a Wall Street Journal news article Friday based on unnamed source said Google is will be ready this year to introduce an electronic-payment service, code-named Google Wallet, that stock market analyst said could adversely affect PayPal.

      So far, Google officials are declining to comment on whether they have any plans to launch a PayPal style electronic-payment service.

      Google already has its AdSense micropayment billing systems to enable customers to pay for advertising.

      A PayPal type of payment system would allow customers to maintain balances in their accounts as if it was a checking or savings account.

      The service is mainly used by people who regularly trade on eBay or are running an online business, either through eBay or through their own commerce sites.

      /zimages/3/28571.gifClick here to read Larry Seltzers opinion that Google ads indirectly support adware and Internet domain parking.

      Such a payment system would be valuable for Google as it continues to expand the goods and services it sells online, particularly its Froogle online shopping service.

      Right now, most of its revenue comes from online advertisement. But its clear that Google wants to broadly expand the content and goods it sells online.

      An electronic-payment system would be essential for Google to expand its ability into a market for books, text documents of all kinds, video and audio.

      Once such a system is in place, there really would be no limit to what Google could sell online.

      It already sells advertising placement on an auction basis. There is no reason why it couldnt expand that into other goods as well.

      Next Page: A serious threat?

      A Serious Threat


      ?”>

      The system could also be used to pay for classified advertising to sell a wide range of goods and services.

      Its difficult to say that any online payment system would be a serious competitive threat to PayPal before Google is even ready to comment on whether it has any intention of introducing such a service.

      But David Edwards, an analyst with American Technology Research in San Francisco, noted that Google PayPal is strongly entrenched in eBays operations and the online auctions “is a fairly captive business for PayPal.”

      /zimages/3/28571.gifClick here to read John Pallattos opinion that publishers will benefit from Googles new book search engine.

      Furthermore, there is a high-degree of loyalty among consumers and vendors who use PayPal for transactions outside of the eBay auction sites, he said. Just the existence of a Google payment system wouldnt be a compelling reason to switch from PayPal, he said.

      “I do think it would be very important to have a payment system to expand its Froogle shopping system and to encourage consumers to purchase for pay content through its web site,” Edwards said.

      “But I dont necessarily believe they have to recreate PayPal to be successful,” he said. They simply need an easy and effective system to let consumers purchase content from a variety of vendors, he said.

      In a market report on the prospects of a Google payment system, Edwards noted that on April 13, 2005, Google filed papers to form the “Google Payment Corp,” which could be an indication that Google is getting ready to offer such a service.

      But then it may have nothing at all to do with an electronic payment service, and there is no indication when Google might announce such a business.

      Its also possible that Google would create a single payment/billing account that would enable merchants to buy ads and receive payments for products through the same account, Edwards report said, which would also be similar to PayPal.

      Yahoo also had an electronic payment system called PayDirect that the search engine company shut down as of Nov. 22, 2004, because the company could not attract enough users to make the service a long-term success.

      Edwards contends that publishers would benefit from an online payment system that would allow customers to click through to paid content, purchase content and then have the payments accrue in a Google Wallet account.

      However, publishers have already expressed concern about allowing Google to provide significant access to their copyrighted works.

      Edwards also said he expected that Google would outsource the infrastructure of the system rather than try to build and maintain it in-house.

      “The company has repeatedly disclosed in its filing that it intends to migrate worldwide billing, collection and credit evaluation functions to a third party service provider, Bertelsmann AG,” the report said.

      Google will have plenty of work to do to build up its electronic payment system to serve its own customers needs before it can even begin to thing about whether its service would take even a single transaction away from PayPal.

      John Pallatto is a veteran journalist in the field of enterprise software and Internet technology. He can be reached at john_pallatto@ziffdavis.com.

      /zimages/3/28571.gifCheck out eWEEK.coms for the latest news, reviews and analysis about productivity and business solutions.

      John Pallatto
      John Pallatto has been editor in chief of QuinStreet Inc.'s eWEEK.com since October 2012. He has more than 40 years of experience as a professional journalist working at a daily newspaper and computer technology trade journals. He was an eWEEK managing editor from 2009 to 2012. From 2003 to 2007 he covered Enterprise Application Software for eWEEK. From June 2007 to 2008 he was eWEEK’s West Coast news editor. Pallatto was a member of the staff that launched PC Week in March 1984. From 1992 to 1996 he was PC Week’s West Coast Bureau chief. From 1996 to 1998 he was a senior editor with Ziff-Davis Internet Computing Magazine. From 2000 to 2002 Pallatto was West Coast bureau chief with Internet World Magazine. His professional journalism career started at the Hartford Courant daily newspaper where he worked from 1974 to 1983.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×