Google's GBuy expected today
Google plans to take the wraps off a new online payment system dubbed
GBuy as early as today, a report
by Reuters states. Google wouldn't confirm the report when quizzed
by Reuters, but it did say a payment service was indeed in the works.
Interestingly, the company added that the service won't be introduced as
a direct competitor to eBay's PayPal. Rather, GBuy is expected to be
pushed as a payment system for online merchants unable to take direct
credit card payments—not auctions or direct user-to-user
transfers, which is PayPal's forte. According to RBC Capital analyst
Jordan Rohan, GBuy will initially launch as a free trial service before
Google starts taking 1.5-2% cuts on payments.
Seeing the imminent threat, eBay isn't biding its time. Last month, it
announced a multi-year hookup with
Yahoo that will make PayPal the "preferred payment provider" for Yahoo
services. PayPal VP Dana Stadler says as a result, PayPal will be
"deeply integrated into Yahoo." PayPal is also expected to double its
coverage to 100 countries this year.