Google Checkout is intended to pose a direct competitive threat to PayPal, which was acquired by eBay in 2002. Whilst PayPal is still seen as the market leader in online payment processing, Google Checkout, which has been dubbed the "PayPal killer", is seen as a major threat to that mantle with the sheer size, scale and perception of the Google brand a distinct advantage. This payment processor can be integrated directly into merchant sites and offered as an alternative to existing checkout or credit card systems.
Google Checkout, which launched in the US on the 29th of June, 2006, is intended to make online purchases simpler and safer. With the e-commerce market burgeoning to over $18bn in 2006 the primary obstacle for continued growth in the online marketplace are fears over security. Google Checkout is an account based payment processor, much like PayPal, that allows users to log directly into Google without the need for credit or debit card numbers. Google Checkout stores personal information and preferred payment information allowing users to skip the various forms associated with merchant sites. Google are using the safety angle as a prominent selling point. Tim Maly, Head of Checkout Operations at Google, states:
"We've implemented this system to detect [fraud], including such industry-standard checks as address and card verification, as well as advanced risk-modelling techniques. We also use cross-industry resources like global fraud blacklists to prevent known fraudsters from using Checkout."
But these stringent anti-fraud measures have caused some disruption to the function of the system. In recent days these fraud protection checks have led to glitches in Checkout with the order system taking longer than anticipated to process. Google has been criticised in some quarters for releasing products too early and fixing errors post launch. This has become something of a tradition for Google, who argue that their constant development and release process is the very hallmark of its progress.
Google have a long history of promoting new services to users by giving away free merchandise. Dror Shimsowitz, their Product Marketing Manager, stated:
"There are two key elements [to making Google tick]: our ongoing commitment to building great technology that empowers people like you, and of course our passion for free T-shirts."
Never one to say no to a free T-shirt, bigmouth picked one up straight away.
