Google to start new payment system to compete with Paypal

By

Online search-engine leader Google Inc. is preparing to introduce an electronic payment system later this year in a move that would pose a financial threat to one of its biggest advertisers, Internet auctioneer eBay Inc.

The likelihood of Google rolling out an online payment system to rival eBay?s popular PayPal service became a hot topic during an Internet conference hosted Thursday by Piper Jaffray.

?It could be a pretty big negative for eBay if it happens,? said Piper Jaffray analyst Safa Rashtchy, who follows Google as well as the Web?s leading auction site. PayPal accounted for $233.1 million, or 23 percent, of eBay?s revenue during the first quarter.

Comments are closed.