Report: Google Venturing into E-Pay Service; Could Compete With EBay's PayPal

Just when it looked safe to leave the keyboard, here comes the Journal with news that Google is planning an electronic payment service this year. (The code name is rumored to be “Google Wallet,” which sounds very Google but who knows?) This comes from “people familiar with the matter” — aka “knowledgeable people” — following a rash of chatter at the Piper Jaffray conference. Details are sketchy but it “could have similarities” with eBay’s PayPal, which allows users to fund online transactions though bank accounts or credit cards without providing that information directly to merchants or others. PayPal generated $233 million — or 23 percent of eBay’s revenue — in 1Q05; 71 percent of that came from eBay sales.
Beyond the competition with eBay, the Journal frames this as a chance for Google to add another significant revenue stream beyond online advertising. I can see it now — a Google double-dip of sorts with the search engine getting money from ad transactions and making money on some of the payments.
I was tempted to label this “the Friday rumor” but I’d like to think the Journal wouldn’t publish a news story based on conjecture. The story does hedge a lot …

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