Will Competition with Google Checkout Force Fee Cuts at PayPal?
Writing by Brick Marketing on Wednesday, 13 of February , 2008 at 5:59 pm
This is pure speculation on my part, but if you look at what is happening with the eBay vs. Amazon competition, you cannot help but be a little hopeful that things are going to get cheaper with PayPal. Google Checkout is the first real competition that we have seen for PayPal in a long time. There are plenty of other online payment processors, but they have effectively had their hands tied in the United States and that has allowed PayPal to have a near monopoly status for a very long time.
Other online payment processors have chosen gambling dollars over U.S. operations as anti-gaming laws have taken effect. PayPal has always had a much broader client-base and with the absence of any alternative, that is what people have used, for better or worse. This was great for PayPal, but bad for business. Without a stable competitor, PayPal has been able to charge what they want, to a certain extent. People have just had to bear the PayPal charges.
If Google Checkout is able to build up to the stage that it is really an international player (just operating in the U.S. and U.K. does not really count), they might find themselves in a position that they are able to threaten PayPal’s bottom line. That is when we are going to start seeing some real changes to PayPal’s fee structure.
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Category: PayPal, GooglePay, Online Payment Processing
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