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EcommerceBytes-NewsFlash, Number 1519 - April 18, 2007 - ISSN 1539-5065    1 of 5

eBay's PayPal Battles Google Checkout with Help of Yahoo

By Ina Steiner
April 18, 2007

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Yahoo and eBay's PayPal subsidiary launched a new online payment program called Yahoo! PayPal Checkout, similar to Google Checkout. The paid-search ads of participating merchants will appear on Yahoo search results with an icon indicating the merchant accepts the checkout program, provided by PayPal through its PayPal Express Checkout service.

Yahoo claims the new program gives merchants that accept PayPal Express Checkout special recognition in Yahoo Sponsored Search results. "A shopping cart icon appears next to their ad, setting it apart from others on the search results page."

The new program gives merchants free PayPal Express Checkout processing through the end of 2007 (in the form of monthly credits), and merchants receive $100 in credit in their Yahoo Sponsored Search account (https://www.paypal-promo.com/searchmarketing/index.html).

Yahoo's FAQs state that once sellers have signed up for the program and have a $1 transaction go through PayPal Express Checkout, the blue shopping-cart icon will appear next to their Sponsored Search ad in approximately 10 days. And for a limited time, Yahoo is promoting PayPal Express Checkout merchants in Sponsored Search results, even for merchants who may not have signed up for the program. "If you do not sign up for the program, over time you will not see the icon next to your ad."

As part of an agreement entered into one year ago, Yahoo made PayPal the exclusive third-party provider of its online wallet, integrated PayPal on the Yahoo site and began promoting PayPal as Yahoo's payment solution to Yahoo's merchants and publishers. In addition, Yahoo is the exclusive third-party provider of all graphical advertisements throughout the eBay.com site, and provides sponsored search results on eBay.com search results pages (http://www.auctionbytes.com/cab/abn/y06/m05/i25/s03).

eBay auction-management service provider Kyozou announced it is among the first to be aligned with PayPal's new Express Checkout processing technology (http://ecommwire.com/?id=1685&keys=PayPal-Express-Checkout).


About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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