Google is offering merchants free use of its online payment service through 2007 as it takes on eBay's PayPal. The Internet search giant introduced Google Checkout in June, with free ad credits for merchants. In November, it began offering rebates to consumers, such as $10 off $30 purchases. eBay had no comment on Google's plans.

PayPal charges 2.9% plus 30 cents per transaction on sales up to $3,000 a month. Google's fee is 2% of the sale plus 20 cents, less if the merchant is a Google advertiser. Google's consumer rebate can be used many times. The PayPal rebate offer expired in November, but the company is offering a one-time- use discount to selected customers via e-mail. Some stores may offer extra incentives through either service.

Benjamin Ling, CEO of Checkout, says it was not designed as Google's answer to PayPal but as a way to cut down on the steps needed for consumers to complete a purchase. He said the company decided to drop its merchant fees for now as a way to induce more businesses to try Checkout.

NamNews - Friday 8th December 2006

 

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