Google to unveil Gbuy

Marketplace Staff Jun 28, 2006

TEXT OF STORY

MARK AUSTIN THOMAS: Call it the clash of the online titans. The formerly friendly relationship between Google and eBay is getting hostile. Last month, eBay announced an exclusive partnership with Google’s arch-rival Yahoo. This week, Google is expected to fire back. Marketplace’s Charla Bear tells us what it could mean for the future of online shopping.


CHARLA BEAR: Google is set to launch an online payment system dubbed Gbuy to compete with eBay’s PayPal system.

It might seem like an odd move since eBay is one of Google’s biggest advertisers, but technology analyst Matthew Del Percio says it makes sense for Google in the long-run.

MATTHEW DEL PERCIO: They really want to get consumers locked in to their service so they can diversify their business model as opposed to just being a one-stop-search-shop.

Google plans to put Gbuy logos next to merchant links. Del Percio says that the strength of Google’s brand could break PayPal’s lock on web-based payments.

DEL PERCIO: PayPal is mostly used to pay for products sold on eBay. The reality is it does not have strong ties to merchant sites.

But Del Percio says don’t cry for eBay just yet. The online auction house could decide to accept Gbuy payments alongside PayPal, which could boost eBay’s bottom line as online shopping grows.

I’m Charla Bear for Marketplace.

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