Report: Google's online payment service due this week

Google plans to begin testing publicly an online payment system this week, according to The Wall Street Journal.

Google plans to begin testing publicly this week its much-awaited GBuy service, letting users and company-watchers finally see how the company plans to attack the online payments market, according to The Wall Street Journal.

Google acknowledged more than a year ago that it was working on an online payment service, and high-ranking executives have discussed it in general terms over the past 12 months.

Earlier this month, RBC Capital Markets financial analyst, Jordan Rohan, said in a report that Google planned to launch GBuy on June 28 as an online payment platform for its advertisers. Meanwhile, The Journal is reporting that to entice buyers to try GBuy, Google will offer them rebates on their purchases.

For participating advertisers, Google will place a GBuy icon next to the text ads it displays along with search results. When people click on such an ad and decide to make a purchase from that advertiser, they will have the option to complete the transaction using GBuy, according to The Journal. Google would charge advertisers a fee for the GBuy transaction service.

Google isn't new to online payments. It has employed such systems in its dealings with advertisers for years and recently began testing online payments in its Google Base listings service.

However, from the beginning, GBuy has been seen as a clear attempt by Google to expand into business-to-consumer e-commerce, a new area for the company, whose revenue comes almost entirely from online ad sales.

GBuy also potentially puts Google on a collision course with eBay's PayPal unit. In fact, many consider GBuy as a big motivator behind eBay's decision to enter into the wide-ranging partnership with Yahoo that the companies struck last month. Yahoo is feeling competitive heat from Google's forays into the world of Web portal services.

As described, GBuy sounds like a relatively standard online payment system, and Google's challenge will be to generate interest among merchants and buyers, a Jupiter Research analyst, Edward Kountz, said.

Google is a trusted brand for advertisers and users in the search engine world, but to transfer that success to GBuy, the service will have to be easy to use and very secure, he said.

"Any brand that can be turned into a verb for Internet usage -- to 'google something' -- indicates a level of familiarity that's very important. It's different to say that Google is trusted as a transaction platform today, but it could become trusted," Kountz said.

In terms of timing, GBuy comes amidst renewed interest in e-commerce and online payment systems, not only via desktop PCs but also mobile devices, Kountz said.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?