(WSJ sub req) Google to Offer Payment Service Like PayPal
The largest online ad and information broker wants to broker transactions too. No real details exposed, but this (WSJ sub req) is not a real surprise:
Google Inc. this year plans to offer an electronic-payment service that could help the Internet-search company diversify its revenue and may heighten competition with eBay Inc.'s PayPal unit, according to people familiar with the matter.
It will be interesting to see what sort of walls Google builds as they expand into other verticals.
You can't dip your toe into certain markets without a strong desire to shut out competitors, but if the moves are too blatent people will shun Google. Their search algorithms and business practices will get called in question much more frequently now. A while ago, due to that hum dinger too much similar anchor text filter Google rolled out, PayPal was not ranking for its own name. Now you will have people asking if things like that are an accident or a feature.
I can't see some marketers wanting to share transaction history details with their ad broker, but if the roll out is smooth and smart Paypal could be screwed. Interesting times indeed.
Notice how this news came out on a Friday evening after the market closed, so Google could generate spin and press all weekend long.