Google Launches Online Payments Service Called Google Checkout

Posted on July 17, 2006

Google has announced the launch of its new online payments service called Google Checkout that will compete with services like eBay's Pay Pal. Google is currently offering a tie-in deal for sellers that also use AdWords, Google's contextual advertising system.

Google says, "For every $1 you spend on AdWords, you can process $10 in sales for free through Google Checkout. For example, if you spent $1,000 on AdWords last month, this month you can process $10,000 in sales at no cost. The more you spend to promote your business through AdWords, the more you save on transaction processing fees with Google Checkout."

For buyers Google Checkout accepts major credit and debit cards, including VISA, MasterCard, American Express, and Discover. They also list some places to shop and includes discounts to some online stores. Payments News has a good overview of the story of Google Checkout so far. CNET says Google Checkout is not just a problem for eBay. They argue that it is also "Amazon's worst nightmare."


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