Google is about to introduce a test version of its long-anticipated GBuy online-payment service, possibly this week, writes the Wall Street Journal (via Micro Persuasion). Google is reportedly also planning to offer a rebate to those who use Gbuy to make an online purchase, according to one source cited by the article. Integrated with AdWords, Gbuy will allow searchers to click on an icon embedded in certain text ads, signifying those merchants/advertisers accept Gbuy payments; buyers would then go through a checkout process tailored for Gbuy.
Though Google has in the past said it's not attempting to compete with eBay's PayPal, Gbuy would certainly be used by some users in lieu of PayPal. "As eBay pushes more transactions that avoid the lengthy auction process, this new program puts Google squarely against the auction giant," according to Micro Persuasion's Steve Rubel.
Google apparently plans to charge merchants a 2.2 percent commission on sales, plus 30 cents per transaction; Pay-Pal's lowest published commission rate is 1.9 percent, plus 30 cents per transaction. AdWords advertisers would have their commissions rates discounted, and even entirely eliminated, according to the Journal's sources.
Prior coverage:
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- Yahoo and eBay Form Online Advertising and E-Commerce Alliance
- Google Pay-Per-View Video in Works
- Getting Ready for 'Google Store'
- Google CEO Confirms Payment Tool; Says Won't Challenge PayPal
- 'Google Wallet' Reportedly Ready to Jump into PayPal's E-Payments Space
