As expected, eBay is not playing nice with the latest release of Google Checkout because it’s in direct competition with eBay’s child company, PayPal. Paypal is a well known payment processor online, quite possibly the most widely used in the world, and Google Checkout would be interfering with that market. Google Checkout is offering these services for free which is quickly drawing merchants in and starting the integration process a lot faster than it would have. Google has been is very easy for merchants and consumers to use the new Checkout, which makes it ideal for everyone.
While PayPal has a similarly integrated system, via one login and not having to manage many different accounts, there’s one major difference. Google Checkout lets you track purchases, display all recent purchases, and basically lets you have one login to manage everything. This is ideal for consumers buying a lot online so they don’t have to go to many different sites just to check the status on different items. I know from personal experience, if Newegg offered the Google Checkout service, I would definitely be using it. I order a lot of hardware online and having that integration would make my life just that much easier and better.
But back to the main point: eBay is banning users from using Google Checkout because they don’t want the competition interfering with the child company PayPal. This could have a couple different effects. Either people will slowly move away from eBay and move to an alternate auction site, they will just not use Google Checkout, or quite possibly, Google may release their own ‘eBay’ type site in the future. (via)
