Rumor: Google in at old Walmart?
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Rumor: Google in at old Walmart?
The latest rumor: Google is starting up a business that will compete directly with PayPal, and they're setting up the national operations for this new service in the location of the old WalMart that sits vacant around 99th and Fort. Anyone heard anything about this?
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Wall Street Journal Online:
Google Plans Online-Payment Service
New Business May Diversify Revenue Stream, Compete With eBay's PayPal Arm
By KEVIN J. DELANEY and MYLENE MANGALINDAN
Staff Reporters of THE WALL STREET JOURNAL
June 20, 2005
Google Inc. this year plans to offer an electronic-payment service that could help the Internet-search company diversify its revenue and may put it in competition with eBay Inc.'s PayPal unit, according to people familiar with the matter.
Exact details of the search company's planned service aren't known. But the people familiar with the matter say it could have similarities with PayPal, which allows consumers to pay for purchases by funding electronic-payment accounts from their credit cards or checking accounts.
WALL STREET JOURNAL VIDEO
CNBC's Jim Goldman discusses Google's plans to launch a product that will compete against eBay's PayPal unit.
Some consumers like PayPal for the security it offers, since it allows them to share their banking or credit-card numbers only with PayPal without having to divulge the information to merchants.
Officials of Google and PayPal declined to comment.
For Google, Mountain View, Calif., a payment service could represent a significant expansion beyond online advertising, which generated 99% of its $3.2 billion in revenue last year. Online-payment providers typically generate revenue by taking a commission on each transaction.
EBay's PayPal service generated $233.1 million, or 23%, of eBay's revenue in the first quarter. PayPal has been widely adopted by buyers and sellers on eBay's auction marketplace as a way to pay for purchases. Recently, eBay has been trying to expand PayPal's presence as a payment system for other Web sites. In the first quarter, 71% of PayPal's revenue came from eBay auctions, the company says.
"It could be a pretty big negative for eBay if it happens," says Safa Rashtchy, Internet analyst at Piper Jaffray. Mr. Rashtchy said he believes Google is also working on a classified listing service, which also would compete with eBay, which is based in San Jose, Calif.
The moves would highlight the growing rivalry between the two Internet companies, even while eBay itself is a big buyer of Google's online ads. For example, many eBay sellers now also sell through their own Web sites, to which they attract shoppers by buying search-related ads on Google.
Google has offered hints that it might set up an online-payment service. Its Web site says the company will eventually allow consumers to pay to view videos online.
The company on April 13 filed to incorporate an entity called Google Payment Corp., according to an online California state business database, though it isn't known whether that is linked to Google's payment-service plans. Google itself has so far not provided any details of any payment-service plans. Google currently accepts credit-card payments for some services, including advertisements and customized research.
Rumors about a new Google payment service escalated following a panel discussion at a Piper Jaffray Internet conference on Thursday. At the conference, Scot Wingo, chief executive of ChannelAdvisor, a Morrisville, N.C., e-commerce consulting firm, said he believed the payment service would be launched soon.
In an interview, Mr. Wingo said he based his statement on questions from retailers with which his company works. Mr. Wingo said the retailers have asked him whether ChannelAdvisor would support the service, which some believe goes by the code name Google Wallet.
During the discussion, Patrick Byrne, president of online retailer Overstock.com Inc., recalls saying, "Yes, this Google Wallet sounds like it might be great. But is all this public yet?" In an interview, Mr. Byrne says he hasn't had any "substantive discussions" with Google about a payment service.
Google Plans Online-Payment Service
New Business May Diversify Revenue Stream, Compete With eBay's PayPal Arm
By KEVIN J. DELANEY and MYLENE MANGALINDAN
Staff Reporters of THE WALL STREET JOURNAL
June 20, 2005
Google Inc. this year plans to offer an electronic-payment service that could help the Internet-search company diversify its revenue and may put it in competition with eBay Inc.'s PayPal unit, according to people familiar with the matter.
Exact details of the search company's planned service aren't known. But the people familiar with the matter say it could have similarities with PayPal, which allows consumers to pay for purchases by funding electronic-payment accounts from their credit cards or checking accounts.
WALL STREET JOURNAL VIDEO
CNBC's Jim Goldman discusses Google's plans to launch a product that will compete against eBay's PayPal unit.
Some consumers like PayPal for the security it offers, since it allows them to share their banking or credit-card numbers only with PayPal without having to divulge the information to merchants.
Officials of Google and PayPal declined to comment.
For Google, Mountain View, Calif., a payment service could represent a significant expansion beyond online advertising, which generated 99% of its $3.2 billion in revenue last year. Online-payment providers typically generate revenue by taking a commission on each transaction.
EBay's PayPal service generated $233.1 million, or 23%, of eBay's revenue in the first quarter. PayPal has been widely adopted by buyers and sellers on eBay's auction marketplace as a way to pay for purchases. Recently, eBay has been trying to expand PayPal's presence as a payment system for other Web sites. In the first quarter, 71% of PayPal's revenue came from eBay auctions, the company says.
"It could be a pretty big negative for eBay if it happens," says Safa Rashtchy, Internet analyst at Piper Jaffray. Mr. Rashtchy said he believes Google is also working on a classified listing service, which also would compete with eBay, which is based in San Jose, Calif.
The moves would highlight the growing rivalry between the two Internet companies, even while eBay itself is a big buyer of Google's online ads. For example, many eBay sellers now also sell through their own Web sites, to which they attract shoppers by buying search-related ads on Google.
Google has offered hints that it might set up an online-payment service. Its Web site says the company will eventually allow consumers to pay to view videos online.
The company on April 13 filed to incorporate an entity called Google Payment Corp., according to an online California state business database, though it isn't known whether that is linked to Google's payment-service plans. Google itself has so far not provided any details of any payment-service plans. Google currently accepts credit-card payments for some services, including advertisements and customized research.
Rumors about a new Google payment service escalated following a panel discussion at a Piper Jaffray Internet conference on Thursday. At the conference, Scot Wingo, chief executive of ChannelAdvisor, a Morrisville, N.C., e-commerce consulting firm, said he believed the payment service would be launched soon.
In an interview, Mr. Wingo said he based his statement on questions from retailers with which his company works. Mr. Wingo said the retailers have asked him whether ChannelAdvisor would support the service, which some believe goes by the code name Google Wallet.
During the discussion, Patrick Byrne, president of online retailer Overstock.com Inc., recalls saying, "Yes, this Google Wallet sounds like it might be great. But is all this public yet?" In an interview, Mr. Byrne says he hasn't had any "substantive discussions" with Google about a payment service.
