30 June 2006 | Author: Rob McNair

Step aside Paypal, Google's in town!

The search engine giant Google finally launched their new internet payment system on the 29th of June. Say hello to Gbuy / Google Wallet / Google Checkout...

Whatever it is that you've become used to calling it, the new payment system from Google is now here. Google claims it will be unlike Paypal but could become a PayPal-like infrastructure for payments across the internet.

As exciting as this may be, Google executives have said little about the Google payment product, originally called Gbuy, or Google Wallet, depending on who you talk to, but seemingly renamed to Google Checkout now that the Beta has gone public. This blanket of silence is not unusual for the search superpower as their previous product launches from Google Earth to Google Cube have followed the same path.

Three weeks ago, Google's Chief Executive Eric Schidt confirmed that they were testing a payment system that would speed up online purchases, but would not directly compete with Paypal. Schmidt was adamant that the payment system was not targeted at consumers; the aim for the system is to target advertisers.

Google released a statement saying: "Billing and payments have historically been a part of Google's advertising programs and online services. As we've previously announced, we offer users the ability to buy items on Google Base and at the Google Store as well as pay for services like Google AdWords, Google Video and Google Earth. We have nothing specific to announce at this time."

As an electronic wallet system that would be easy to use and have high security provided, Google Checkout will let shoppers carry their payment information around to multiple different merchants, thereby saving them the time of having to enter their credit card and billing data every time they shop. Merchants will be offered discounts on advertisements and customers are expected to be offered rebates.

Many industry analysts have speculated that Google's Checkout will lead to the demise of PayPal. Google is adamant that Google Checkout is not geared to directly compete with Paypal as it will "offer a lot more."

Sounds like fighting words to me... If you want to know a little more about the Google Checkout then 'check out' the review from the big mouth media team elsewhere in the newsletter this week.

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