The latest big hubbub not involving blond newsreaders is that eBay has added Google Checkout to its list of payment services not allowed in its marketplace.
Google joins an illustrious list:
AlertPay.com, anypay.com, AuctionChex.com, AuctionPix.com, BillPay.ie, ecount.com, cardserviceinternational.com, CCAvenue, ecount, e-gold, eHotPay.com, ePassporte.com, EuroGiro, FastCash.com, Google Checkout, gcash, GearPay, Goldmoney.com, graphcard.com, greenzap.com, ikobo.com, Liberty Dollars, Moneygram.com, neteller.com, Netpay.com, Nochex.com, paychest.com, payingfast.com, paypay, Postepay, Qchex.com, rupay.com, scripophily.com, sendmoneyorder.com, stamps, Stormpay, wmtransfer.com, xcoin.com
All of these services have been banned due to being unsafe for eBay buyers, that they are in some way poorly designed or secured and thus aid fraud. Google Checkout, however, is too new and untested to fall into this category, so it is far more likely that this is being done for political reasons. Checkout is very similar to Paypal, just cheaper, so if a large number of eBay’s merchants switched over, a huge portion of their revenue model would just go away.
eBay, unlike many other internet companies, doesn’t really believe in transparency. Unlike Google or Microsoft or Yahoo, they don’t release many products, and have a consistent stream of earnings coming from owning a large marketplace, like Amazon, and don’t need community support to survive. Google could have went the eBay route, and been a far less stressful company for it, but they decided to jump right in and go toe-to-toe with the big boys.
Ars goes over the possible reasons for the decision (beyond the more obvious political/conspiracy ones):
Unlike PayPal, Google Checkout is not primarily a consumer-to-consumer (C2C) payments service. Google’s new service appears to be focused primarily at small businesses while aiming at larger sites down the line. As it is currently situated, it’s not going to turn into a C2C service anytime soon. There is no provision for sending payments to those without merchant accounts and no way to send money to an e-mail address, as is the case with PayPal.
So why the hate from eBay? In perusing eBay’s Accepted Payments Policy, Google Checkout would appear to meet criteria such as financial, privacy, and antifraud protection; not involving precious metals or other noncash services; and regulatory concerns. However, a couple of bullets point from eBay’s list of criteria for who makes the cut stand out: “the identity, background and other business interests of the payment service sponsor” along with “whether the payment service has a substantial historical track record of providing safe and reliable financial and/or banking related services.”
AuctionBytes has a quote from a Google spokesperson:
A spokesperson for Google said it has no restrictions regarding marketplace use. “We want to work with everybody,” she said on Wednesday.
Now, isn’t that the most gosh-darn cutest quote ever!
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Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.
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