I remember reading some about Google’s payment processor plans, Gwallet. According to this article Google has been testing this already for a few months, and Jeff Jordan and the folks at Paypal have been scrambling trying to get the skinny on it.
While Google Chief Executive Eric Schmidt confirmed in press accounts that the company was building a payment service, Mr. Schmidt also denied it would directly compete with PayPal. Mr. Schmidt said Google didn’t intend to offer a “person-to-person, stored-value payments system,” which many people consider a description of PayPal’s service. Mr. Jordan says he and his team immediately “dissected the wording” of Google’s statements. He says he doesn’t believe Mr. Schmidt. In the past, Mr. Jordan says, Mr. Schmidt had denied Google would roll out a payments service, only to take it back later. “We took [the comments Mr. Schmidt made] as ‘Thou doth protest too much,’ ” says Mr. Jordan.
If they’re not going to be a bigger, better Paypal, what is their plan and what’s the use? Doesn’t Paypal have to strong of a hold, especially with eBay?
I certainly wouldn’t be upset to see some competition for Paypal.
Alot of people despise paypal and even if they are the minority its still alot of users that will flock to google’s new service once its available.
Then there are the legions of google fans out there who will try it simply because it is google.
Lastly, google doesn’t need to bigger than paypal although I except that they soon will be. This service will help cement the relationships they have with thier adwords/adsense customers.
Perhaps Paypal would finally consider dropping their fee’s, they’re outrageous right now!