eBay to Ban Google Checkout: What About That PayPal-Android Deal?

Includes: EBAY, GOOG
by: TechCrunch

By Leena Rao

In an interesting twist of events, eBay (NASDAQ:EBAY) announced today that third-party checkout solutions, like Google Checkout, will no longer be supported on eBay after June 30, 2011. eBay says that other checkout solutions (besides PayPal) are only used less than 10 percent of the time on eBay.com.

As a peace offering to those who do use other checkout systems, eBay checkout is being upgraded with a number of features including advanced tax reporting, more credit card integration, and advanced shipping solutions.

Investor’s Business Daily highlights that Google Checkout is competitive with PayPal (although not nearly used as much, which could be a reasoning behind the move.

But it’s a little odd that eBay is phasing out Google Checkout, when apparently the two companies are in negotiations to add eBay-owned PayPal to Google’s Android system as a payments offering. That deal would make sense considering the wide use of PayPal.

But eBay just cut Google Checkout at the knees with this announcement. Google’s Checkout service isn’t nearly as popular as PayPal, but Google (NASDAQ:GOOG) doesn’t seem to be throwing in the towel yet. Google Checkout has the potential to gain significant traction if Google actually starts using it as a payments option in its upcoming platforms.

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