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Google Puts Pressure on PayPal by Offering No Checkout Fees

The online search giant Google is turning the pressure on PayPal and offers deals on its Google Checkout service. Google decided to enter the online transaction market back in June and introduced the Google Checkout service. Since then the company has been struggling against market leader PayPal over prospective merchants. Google offered free ad credits and rebates for consumers, but after PayPal offered counter deals, Google decided to put the pressure to the max and will now offer Checkout with no fee at all during 2007.

The real benefactors from the Google vs. PayPal scenario are the merchants who are getting great deals on the online transaction services. Today, many people are not so happy about giving out their personal information to online merchants, and such services are offering a great and secure alternative. Users are able to open virtual accounts with one of the service provides, and only give their virtual account`s information to online merchants.

Google`s dominance over the internet, and the fact that most merchants are also using Google`s advertising service, allows Google to offer better deals and take market share away from PayPal. As of yet, eBay, PayPal`s owner, had nothing to say about the new Google Checkout deal, but it is expected that new offers will be made public soon enough. As prices drop, more merchants will consider going online, and the market will only grow as a result of these battles. A change in PayPal`s earnings might influence the eCommerce arena, eBay, as 25 percent of its revenue comes from PayPal.