PayPal To Google: Bring It On
PayPal President Jeff Jordan said his company is ready and waiting for any competing payment services that Google may launch. The GBuy system is supposed to come out on June 28, according to a note from RBC analyst Jordan Rohan.
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“We respect their entry and stand ready to compete,” Jeff Jordan stated. He noted that PayPal has had many competitors in the past, and has weathered those challengers well enough. There are currently about 105 million user accounts with the company, which represents a 47 percent increase from the same period last year. And PayPal’s total payment volume is up 41 percent for the same timespan, to its current level of $8.8 billion.
Google’s GBuy may undercut the current champion, though, at least in terms of pricing. The average transaction price to sellers on PayPal is 3.5 percent. GBuy is expected to be completely free for an initial period, and eventually charge 1.5 percent to 2 percent. This is according to Rohan, the same person who gained knowledge of the release date.
Rohan also said that GBuy is going to concentrate only on consumer-to-merchant transactions as it is launched. But he notes that it could be expanded to include consumer-to-consumer transactions at some point in the future.
PayPal’s CEO remained unconcerned. “We think we’re pretty good at it and have a pretty strong lead,” he said, referring to online payment services. PayPal was founded in December of 1998, and eBay’s use of it has made it the dominant leader in the market. GBuy could change that, however.