Sunday, June 11, 2006

GBuy Coming - Bye Bye Paypal

Hey now we know that Bbuy will be the biggest competitor of paypal, will it be defetead?
You can check some quotes about this competition.

GBuy, a service that will allow webmasters to process transactions on their site (analogous to Paypal), will be rolled out on June 28
For the last nine months, Google has recruited online retailers to test GBuy, according to one person briefed on the service. GBuy will feature an icon posted alongside the paid-search ads of merchants, which Google hopes will tempt consumers to click on the ads, says this person. GBuy will also let consumers store their credit-card information on Google.

Will merchants fear overdependence on Google? And is Google equipped to successfully expand into this business, one that represents a significant departure from search?

According to Forbes, GBuy will allow merchants to use the service free of charge during the beta period. When it's released from beta, they will begin seeing a small fee (probably 1.5 - 2 percent) on each transaction — less than PayPal's rates of 1.9 to 2.9 percent (plus $0.30 per transaction).

PayPal is up for some pretty stiff competition — Google will likely take what they have minus any extra or annoying features. If it lives up to this expectation, it just might be a product that merchants consider switching to.

Unfortuantely, it will probably be limited to the United States only. Without an internationally compatible service, adoption of GBuy may be significantly lower due to the number of merchants who conduct businesses across borders — something that PayPal handles without breaking a sweat.