June 29, 2006
Most people are comparing it to Ebay’s Paypal but it is also sounding familiar to Yahoo Shopping in that customers have a way to provide product information (Froogle and the new Google Store) and consumers have a secure way to purchase these products with an account that stores and keeps track of your purchases and credit card information. This 1) makes it far too easy/convenient for you to make purchases (and will encourage users to purchase more), 2) allows Google to make some money off of the transaction, and 3) allows Google to do more things, including with local since obtaining credit card information means a billing & shipping address and would be one of the best ways to validate someone’s location.
Additionally, for those that use Adwords, they can use Google Checkout and will get a little icon next to them to signify they accept this form of payment. For the merchant, it may mean a higher clickthrough rate…even if the consumer does not use Google Checkout, just having that image their may draw the users’ eyes to their ad. Additionally, merchants will like the lower fees with Google Checkout (over paypal). Consumers may also not be quite as concerned with unfamiliar merchants and providing them with credit card information since the only person accessing this info would be Google…this may mean better conversion for those lesser-known merchants. For the consumers, it provides a quick and easy way to shop. For Google, it provides them with a potentially large revenue source as well additional data for them to organize (including conversion rates and user purchasing habits).
Merchants interested in this can find out more here, including amounts of transactions that are free per adwords spend.
Consumers can find out more about Google’s perspective on their blog.
Developers interested in this should checkout their API.