Wednesday, June 22, 2005

Google Payment Corporation

Here is a bit more information concerning the earlier post.
Google Denies Attempt to Match PayPal Service: "Google Inc.'s chief executive Tuesday denied reports that the online search engine leader was gearing up to compete directly with EBay Inc.'s pioneering PayPal service, but acknowledged some kind of electronic payment product was in the works. Eric Schmidt did not give details about the project but said it wouldn't trespass on PayPal's turf. 'We do not intend to offer a person-to-person, stored-value payments system,' Schmidt said.

"That description fits PayPal, a service that creates "digital cash" by accepting credit card payments from its users and then delivering the payments to a designated recipient.

"As e-commerce thrived so did PayPal, growing from 24 test users in 1999 to 72 million account holders through March. Looking to profit from the fees that PayPal collects from completing online transactions, San Jose-based EBay bought the service for $1.3 billion in 2002... Google consistently declined to comment until Schmidt tried to set the record straight Tuesday.

"The Mountain View, Calif.-based company's recent incorporation of a subsidiary called Google Payment Corp. fed the perception that a battle with PayPal loomed. But Schmidt indicated that the project wouldn't stray far from its search engine. 'The payment services we are working on are a natural evolution of Google's existing online products and advertising,' he said without further elaboration..."

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