Comments on: Google Checkout Adjusts Pricing Upward – Matching PayPal

By: Linda

Linda — Sun, 28 Jun 2009 18:16:35 +0000

After many many problems with paypal I would love to see a matching alternative, even if the rates were higher it would be worth pushing paypal into the deep sea. Google made a big mistake hiking rates, their offerings and options are much less than Paypal, and if you are enamored by PP, then why use checkout

By: Sam Mort

Sam Mort — Thu, 21 May 2009 12:07:45 +0000

Does Amazon Payments also charge additional 1% to US sellers on all cross-border transactions like Google Checkout and PayPal?

By: Scott Loftesness

Scott Loftesness — Fri, 20 Mar 2009 02:00:51 +0000

Rahul – thanks for pointing that out. I remember when the micropayments pricing was in beta – and then graduated to full status – but forgot to mention it in the article. Thanks for adding it.

By: Rahul Bhargava

Rahul Bhargava — Fri, 20 Mar 2009 00:05:35 +0000

Scott – a quick add to the article – You probably didn’t know that PayPal has offered micropayments pricing to merchants for a number of years, well before Amazon and guess what it is – 5% + $0.05! Here is the link with more details – https://www.paypal.com/IntegrationCenter/ic_micropayments.html

By: Scott Waldrum

Scott Waldrum — Sun, 15 Mar 2009 03:28:07 +0000

Good summary Scott, thanks. This change makes sense but google has a ways to go yet before they are competitive with the other offerings out there. One of the fastest areas of growth is the recurring payments sector as online subscription services grow. Google has no offering here, paypal and amazon have a static recurring payment solution that works for simple services. I think we’ll continue to see these players move up the food chain into the realm of subscription payment solutions like IPApplications variable recurring payments solution and similar offerings from Zuora and Vindicia.

By: Steve Klebe

Steve Klebe — Sun, 15 Mar 2009 00:49:49 +0000

I agree that the subsidies had run their course, but I believe that without them, Google Check-out will begin a steady decline unless they re-invigorate it with other innovations. A simple e-wallet for credit cards just does not cut it. The value proposition for the consumer is very thin, mostly based on fear and ignorance, rather than real value. Adding another layer in front of what already is a 4 party system just does not make sense.

By: Rich Brennan

Rich Brennan — Fri, 13 Mar 2009 14:17:08 +0000

I agree with Russ. This new pricing structure is a realization that Google no longer needs to ’subsidize’ the use of Checkout and is now able to demonstrate the value of higher click-thru rates and sales conversions. Now that the pricing field is level it will be interesting to watch how the three leaders innovate on the features and functions.

By: Russ Jones

Russ Jones — Thu, 12 Mar 2009 18:18:01 +0000

I think the story here is the elimination of the financial incentive for merchants to use both Google AdWords and Google Checkout. This is startling to some because Google has long positioned Checkout as an advertising innovation. I think it still is, and here’s why.

For the last three years, Google had structured their pricing so that merchants received $10.00 in free Google Checkout transaction processing for every $1.00 they spent on AdWords. This was an important incentive when Google Checkout was new and had no track record. But today, merchants that use Google Checkout have lots of good things to say about higher click thru rates, better conversion rates, etc.

Checkout and AdWords are still closely linked. Nothing has changed in that regard. I think Google just woke up and realized that their key value to merchants is increased sales, not lower transaction cost. In effect, the company was leaving money on the table with their incentive program. I don’t anticipate Google losing one single merchant as a result of this pricing change.

By: Alicia Roisman Ismach

Alicia Roisman Ismach — Thu, 12 Mar 2009 14:56:48 +0000

I believe that all the credit card based systems have now to cover more risks and operational costs than before, this may reflect part of it. It would be interesting to see if fraud statistics are changing in the last months or remain at the same growth pace as in 2008, although with part of these systems the real numbers are impossible to know because repudiation is an internally closed process that is not always reported to the external world….

By: Jack

Jack — Thu, 12 Mar 2009 14:03:13 +0000

Why don’t Google and Amazon perform ACH transactions? Is it because they would get sued by LML Payment Systems for patent infringement as did PayPal and 18 others?
Wake up out there!

http://www.digitaltransactions.net/newsstory.cfm?newsID=1993