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News, opinion, and links from Editor in Chief Harry McCracken.

Well, Maybe No Google PayPal Killer After All

Posted by Harry McCracken | Wednesday, June 22, 2005 4:45 PM PT

All that speculation earlier this week about a PayPal-like service from Google may have been off the mark. Google CEO Eric Schmidt is saying that the company isn't working on a "person-to-person stored-value payments system," which likely means that anything in the works won't be a direct PayPal rival. But Schmidt did refer to "the payment services we are working on," so it sounds like Google does indeed plan to get into the e-payment game one way or another. Stay tuned... (Via John Battelle's excellent Searchblog.)
Comments (25)

I wish google would have done something to shake up paypal. A little competition never hurt anyone...

fuel4dasoul
June 23, 2005
1:36 PM PT

It seems like a tough job to just introduce a pay-pal like service out of nowhere just like that. Besides, Google must be busy with all those searches done everyday, I think they are better off just doing what they do best: Provide efficient searching options. Why try to add more and more? You can only spread your ability so thin before one department starts failing and soon a domino effect starts to take place.

Daniel
June 23, 2005
6:00 PM PT

i hope paypal goes out of business

jim
June 24, 2005
12:08 AM PT

so google will know my shopping habits (thru its ad/cookie system), and "reads" my gmail, and now wants my banking info too. Thats fantasstic.

red hand
June 24, 2005
2:54 AM PT

Paypal ia an awfully abusive company which anyone would find out if there was ever a glitch. They were sued for poor disclosure to consumers and they revert to their long user agreement to free themselves of ever having to provide information that should be on every transaction. When ebay took them over, their main competitor was shut down and I dont know why the acquisition was allowed. Ebay has the advantage of being able to promote paypal as the funding of choice. Paypal would be VERY easy to compete with if someone offered lower prices, even temporarily and sign up bonuses. Paypal's market dominance comes from the fact that they have so many users, first entry, and in order to send/receive you need alot of other people to be members too. Because paypal has market dominance a competitor would need to take alot of time to woo new people.

me
June 24, 2005
7:43 PM PT

PayPal is difficult to deal with. I had an account, but when
I switched banks, I could never qualify because my bank statement did not reflect the same account # as the
PayPal deposit; very similar but not exactly the same.

I've tried 5 times and finally gave up.

Frank Hammond
June 25, 2005
10:22 AM PT

PayPal is difficult to deal with. I had an account, but when
I switched banks, I could never qualify because my bank statement did not reflect the same account # as the
PayPal deposit; very similar but not exactly the same.

I've tried 5 times and finally gave up.

Surely I would welcome competition.

Frank Hammond
June 25, 2005
10:23 AM PT

As long as PayPal asks for the three digits on the back of my credit card I can't wish them well. They don't need that information and it is about all the security I have left.

Curtiss
June 26, 2005
3:27 PM PT

Paypal needs more competitors. This is the only way we end users can benefit anything.

landivas
July 05, 2005
3:29 AM PT

Paypal cant even use bank accounts outside the US, i hope google gives support (if they try to compete) for other countries even if it is a risk to them, paypal is useless if you dont use credit cards, and its encryption methods from what ive read are easily exploited

Beau
July 05, 2005
6:15 PM PT

why is it that you people who get burned by a person on ebay think ebay or paypal has to reimburse you?

aaron
August 10, 2005
5:36 AM PT

Paypal made me lose plenty of money. My webshop was shut down all december last year because I switched bank, and paypal didn't approve. I dont have to tell you I lost a lot of money during christmas season, and they still have'nt approved my account, even though I've faxed every paper they asked me to. Now I have given up, waiting for an alternative company.
Paypal is *******

Andrew
October 06, 2005
12:54 AM PT

paypal was great,UNTIL I FOUND OUT I GOT A 3800.00 CHARGE BACK. paypal aproved this 3800.00 chargeback without even checking with me. also the item was never returned to me. so im out the item and 3800.000. paypal is a scam. if you stay there long enough you'll find out the hard way.
QUIT PAYPAL WHILE YOUR AHEAD..

MARK
November 29, 2005
7:04 AM PT

Paypal locked down my whole account with 8000.00 in it for 3 weeks, because i withdrawed 1200.00 out with the atm card. they said it was for security reasons. i called and emailed to no avail. finely after 50 calls and threating lawyers calling the reinstated my account. due to my account being lock down i had no funds to operate and was not able to ship larger items truck freight,so i recieved neg feedback becuase of paypal. paypal is like the IRS. THEY ARE NOT YOUR FREIND. IF YOU STAY LONG ENOUGH YOU;LL FIND OUT.

JIPPED BY PAYPAL
November 29, 2005
7:10 AM PT

I realy really HATE PAY PAL they have costed me so much headache and money! I want Google to give them some stiff competition. I would love to see them "PayPal" shut down. They are awful!

Ken Williams
December 21, 2005
11:52 AM PT

Please Give PAYPAL THE BOOT! Since so many of us are against paypal why wonta company with so much power like GOOGLE go ahead and Take them out the business or atleast give them some competition. If anyone can do it GOOGLE can. Paypal SUCKS hardcore. I have dealt with them on several occasions and none of them are good. Here is some advise.. If you have money in your paypal account right now hurry and withdraw it. They always seem to wait till you have fund in there that you need before they freeze it. Realize they freeze hundreds of thousands of peoples funds at atime.. Say 50,000 customers have $200 intheir account and they freeze the funds for 180 days which they do 6 FRICKEN MONTHS.. multiply $200 times 50,000 and that yields them interest. They use others to make money .. They say privacy built in but we all know is more like fraud built in. They have numerous times taken funds out my account for no reason and cant account for it. Anyways I can go on and go on.. we need a hero to HELP us with online payments... PAYPAL SUCKS .. GOOGLE OWNER IF YOU ARE READING THIS PLEASE HELP US PLEAAAAAAAASE!!!!!!!!!!!!!

M Dot K
February 04, 2006
1:09 PM PT

I thought I was the only one. Experiencing BULLS***T FROM THEM.

AJC
March 11, 2006
3:20 PM PT

I have been a member of PayPal for about 2 months and am already out 40 quid. I know it's not a lot of money, I sympathize with the poeple that are out hundreds, even thousands. I have been reading horror stories from buyers/sellers that have used paypal and I want to stop using them. I don't want them to have my details anymore. How do we do this, and with all their BS agreements can we do this?
I have been searching for hours.....

SunKat
April 04, 2006
8:10 AM PT

Well if Google isn't going to Kill PayPal maybe someone else will. Are there other Payment providers out there sitting in the wings that might do it? A friend of mine says a company called GreenZap is already going head to head with PayPal. I looked at the site and it just looked silly to me.

Joe
April 27, 2006
12:16 PM PT

greenzap is a damn scam if u had a choice tween pay pal greenzap and burying your money in the back yard bury your money its much safer

dan
April 27, 2006
7:39 PM PT

Fives years with PayPal and not one glitch.

Joe Faust
June 29, 2006
6:40 PM PT

Google is stupid, and doomed to failure. Not one positive comment here about PayPal, and Google is STILL not isted to comptete. BTW - Notice how everytime Google stocks surges up, the CEOs talk shit in the media and tank the stock? hahah, I hate PayPal but I've lost more money on Google stock in a year that I could ever lose with PayPal in a lifetime.

Fred Bread
June 29, 2006
10:11 PM PT

its about time paypal lost its right on the internet to hold and transfer money... they are crap and the customer services is even craper!
paypal is like a bank but yet dont seam to have any regulations at all!! why is this? its about time the goverment steped in and closed them down...
i hate them i have been riped off by THEM because of there "we will take the money back policy" without any real investigation! i had to call the police in the end and get my money though the courts!
so paypal .... up yours!! and you will lose soon as someone will have the guts to take you on!

brumie
July 09, 2006
6:02 AM PT

I've never had a problem with PayPal in five years, but I notice that most of the people that do are nearly illiterate. PayPal doesn't need them at all.

Why switch banks anyway? You should stick with one bank for life.

Also, Beau said "Paypal cant even use bank accounts outside the US." That's not at all true, and I;m living proof.

instroman
July 13, 2006
9:31 PM PT

I, on the other hand, am not illiterate, and have had ongoing problems with paypal for 6 months. Their system works well as long as there are no glitches, however as soon as a problem arises this is when you start to run into difficulties. I had major problems with receiving payments because there was a problem with their webform - I had a total of 53 email stating that the problem was eBay not Paypal - eventually they agreed that it was their problem and escalated the matter with a promise of a response within 24 - 48 hours; 3 weeks later and nothing, and having contacted them again yesterday, I have agin been advised that it is an eBay issue.
I would welcome an alternative but feel that it would need to have the same access to eBay that Paypal currently enjoys - eith that or a change of customer services, because the actual system itself is good.

Chris
July 19, 2006
11:41 AM PT