“Welcome to Google Checkout — a new service that makes online shopping faster, more convenient and more secure” proclaims Googles’ new payment system.
But what else will Google checkout do?
It will drive up the cost of Adwords, for one thing. Not necessarily for sellers using Google Checkout, because they will get a discount in the form of lower transaction costs, meaning, in theory, they can bid higher for their ads. The sellers who aren’t using Google Checkout won’t “qualify” for the “discount”.
It will also give Google valuable sales tracking data. From the merchants. And from buyers.
It may also make Yahoo & MSNs offerings more attractive, because they won’t have the same price pressure.
Google Checkout is not so much a PayPal killer. It’s bigger than that. More of a vehicle to drive and control the sales process end-to-end.
July 31st, 2006 at 11:59 am
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