Microsoft Partners with PayPal to Launch Cashback

Microsoft (MSFT) is announcing the launch of Cashback, a new service that pays consumers who buy items they find through the software company's search service. Savings on products will be based on a percentage of a product's priced which is then paid by PayPal, direct deposit, or mailed by check.

Details of the service will be included in a speech by Microsoft Chairman Bill Gates later today which will also apparently include a taped message from EBAY (EBAY) CEO John Donahoe. For now, the site lists a range of products including running shoes, perfume, Canon digital cameras, Bulova watches and Oakley sunglasses.

The site also lists participating vendors including Barnes & Noble (BKS), Circuit City (CC) and Home Depot (HD). I suppose it would be relatively easy for the EBAY Marketplace to join in this program as a simple extension of their existing affiliate program (except instead of Microsoft keeping the affiliate payments, they would distribute them to their users).

Comments

[Alex Filonov:]

Can it get any better than that? Microsoft is planning to lose even more on the Internet. And it signed up: Circuit City, which is dead already, Home Depot, which is in bad decline and Barnes & Noble, which doesn't feel very good either. Welcome to the club of losers!

Disclosure: long Ebay.

2008 May 21 11:53 AM

[nk001:]

Use the war to your advantage! Has anyone used this before. I have - and it works like this - search using your favorite search engine, retailer, local store - for the lowerst price. Go to Live Search Cashback and you will typically find that same low price + an additional 5-15% discount. Based on what it is, most smaller merchants have free shipping. I recently purchased car seats for my kids which were $150 minimum + shipping / tax. Live Search Cashback - same price $150 but merchants were offering an additional 7-10% off, no shipping, no tax. Saved 30 bucks! Stop thinking about google, think about yourself and come out ahead!

2008 May 21 12:01 PM

[PIGS IN SPACE:]

have they taken it down already? the link on tehterm "cashback" does not work :-)

IMHO - this wll cause a storm. especially for cpa companies

Buckle up and get ready, here comes the worlds first CPA Search engine.......

2008 May 21 07:25 PM

[Spectruman:]

OK , good plan, wanna make it work really, really well. Check your idea submissions I put in a week ago about online advertising. (speaking to Microsoft). Let's make a deal.

2008 May 22 09:29 PM