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Thursday, July 6, 2006

eBay Bans Google Checkout

Posted by @ 6:29 pm

It didn’t take long for eBay to react to the launch of Google Checkout, Google’s new payment system. Less than one week after Google launched its new payment system, eBay has announced that it will not allow buyers and sellers to use Google Checkout as a payment method on eBay.

Google Checkout was only one of several payment methods to be listed as non-allowed, and ten other payment methods have been added to eBay’s list of allowed payment methods at the same time.

A spokesperson for eBay said that Google Checkout didn’t make the cut because eBay requires payment systems to have “a substantial historical track record of providing safe and reliable financial and/or banking related services.” Google vehemently defended Google Checkout’s track record, pointing out that the system had already been used to process payments on Google Base, Google Video and other Google services for months before its official launch last week.

While eBay has stated that the company will continue to monitor the customer demand for Google Checkout and may change its decision, the blacklisting illustrates how seriously eBay takes this competitive threat from Google.

In addition to the ban, eBay has also initiated a major corporate staff reshuffle: The current boss of PayPal, Jeff Jordan, will be leaving the company, and will be replaced by Raji Dutta, who is currently running Skype, eBay’s Internet phone company. Alex Kazim, who is currently the vice president of products for Skype, has been promoted to replace Dutta.

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