AuctionBytes Blog
Covering auctions, collectibles and marketplace selling.

AuctionBytes Blog The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Thu June 5 2008 11:43:04

Latest PayPal Killer Could Be from Microsoft

By: Ina Steiner

Sponsored Link

Every June for the past few years, Google rumors and controversy dominated conversation at eBay's annual user conference. For two years it was Google's "PayPal killer" - until Google Checkout finally launched. Last year it was Google's "Boston Tea Party" that had everyone talking.

This year's eBay Live conference is 2 weeks away, but it is Microsoft who is rumored to be developing an online payment service. ITpro in the UK reported that Microsoft has signed an agreement with a payment processing firm that experts have said could be a precursor to it launching an online checkout service.

Who is more worried, eBay's PayPal unit or Google? And if Microsoft acquires Yahoo, would that spell an added threat?

Here's the press release issued by Symmetric Systems, LLC:

SEATTLE, June 3 /PRNewswire/ - Microsoft has executed an agreement with Symmetric Systems, LLC, developers of http://www.vitalpay.com technology for payment gateway services, global payment processing, merchant workflow and comprehensive reporting.

VitalPay is a comprehensive group of specialized products that provides clients with customized solutions specifically tailored for the business needs of merchants, financial institutions, banks and resellers. VitalPay has at its center credit-card and debit-card processing. It also offers payment processing capabilities, such as Credit Cards, ACH, electronic check conversion, loyalty cards, gift cards, affinity cards and others.

"VitalPay participates in one of the most comprehensive payment-processing platforms in the payment processing Industry," said Matt Jackson, President of Symmetric Systems. "It's connected to bank switches and depository institutions worldwide, offering flexibility, speed in deployment and the benefits of local authorization and settlement where needed for enterprise solutions."

Among the industries to which VitalPay provides client services are retail and specialty retail merchants; mail and telephone order facilities and card-not-present transactions; Internet e-tailers; catalog, travel, and airline industries; government agencies and others. The services of VitalPay are PCI Level 1 compliant and consistent with the industries required security and privacy standards.




Comments (20) | Permalink

Readers Comments

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: Issabella

Thu Jun 5 13:19:58 2008

What difference does any of this make? It doesn't who creates a "payment service", how big they are, or how much weight they have behind them. All eBay has to do is say "no, you can't use it" like they did with Google, and that's it. It's really irrelevant.

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: Lisa

Thu Jun 5 13:40:01 2008

eBay will do what it's always done since it acquired PayPal; refuse to allow any other online service for payment citing "safety concerns".  Microsoft needs to sue eBay for racketeering in order to make their online payment service useful.

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: Tim

Thu Jun 5 13:41:24 2008

Granted, all eBay has to do is declare any new payment service "unsafe"... but here is where Microsoft has an edge over Google.  Microsoft doesn't get millions of dollars from eBay... they have no reason NOT to sue.  They could sue eBay and get the "unsafe" argument thrown out in court.

Google has millions of reasons ($) not to sue eBay over this obviously rigged system.  Microsoft has millions ($) of reason to sue.

Bring it on Microsoft!

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: The Graduate

Thu Jun 5 14:36:33 2008

It would be nice to see eBay and Microsoft fight it out over this one.  

If eBay sellers could offer an alternative payment service, PayPay would feel the competition and would likely lower their rates.

@Tim,

Ebay thinks everything they can't get a percentage of is ''unsafe''.
Of course there's nothing wrong with Google Checkout.  In fact it may be safer since buyers are well aware that they can run very effective scams using PayPal.

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: Ric Roe

Thu Jun 5 15:57:11 2008

It is great to see that the Internet giants are possibly going to challenge eBay's monopoly.

While I agree that eBay will simply circle the wagons, point fingers and utter "unsafe if it ain't PayPal" their arguement is getting weaker and weaker everytime they roll it out.

PayPal refuses to quantify their accusations that other systems are less safe. eBay/PayPal perpetually expect that their declarations are accepted as being true despite their continued failure to release any statistical evidence to support their position.

eBay/PayPal never releases any internal numbers other than what comes out Quarterly and yearly. They rely on "because we say so" to confirm their many allegations against other checkout methods.

In reality, eBay/PayPal are interested solely in how much they can squeeze out of customers hence the high fees in place once they banished competitors checkout systems from their site.

One need look only at PayPal's submission to Australia's ACCC to see that PayPal alleges they are safer, yet they conceal any verifiable evidence to support their claims.

It is this type of dishonesty coupled with the highest fees on the Internet that has many waiting with open arms for large Internet Companies to create an alternative to the eBay/PayPal monopoly, not just in checkout, but in online sales as well.

With the number of dissatisfied customers currently at eBay/PayPal, another checkout option run by any company that is not as greedy as eBay/PayPal would be welcomed by millions.

eBay/PayPal would be severely crippled by a serious contender if they were to open a competetive retail site with alternate payment methods.

A Microsoft/Yahoo or a Google effort could possibly become an instant success given eBays current neagtive relationship with sellers and buyers.

With the number of dissatisfied customers currently at eBay/PayPal, another checkout option run by any company that is not as greedy as eBay/PayPal would be welcomed by millions.

eBay/PayPal would be severely crippled by a serious contender if they were to open a competitive retail site with alternate payment methods.

A Microsoft/Yahoo or a Google effort could possibly become an instant success given eBay's current negative relationship with sellers and buyers.

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: Gail

Thu Jun 5 16:33:22 2008

@ Issabella Jun 5 13:19:58 2008

eBay may not allow a Microsoft alternative on its website, but PayPal could still be crippled by a viable addition to the web payments market.  The relavence is that, at the very least, it would necessitate a competitive fee structure, and competition benefits the consumer.

PayPal not only relies on eBay, it relies on web merchants and smaller web sellers for its income.  If Microsoft offers an alternative to those selling from their own websites, and sellers adopt this payment method, it would stifle PayPal's ''expected expansion''... an expansion that eBay is relying on in its forward looking agendas.

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: 1busyman

Thu Jun 5 22:27:01 2008

Forget about what ebay does and does not do, ebay will be facing more and more competition. More seller’s sites will come online, possibly Google, Yahoo/MSFT merger and compete with ebay. Every dog has its day, I cannot wait until MSFT and Google and others launch their ecomm sites and ban paypal.

Folks the tides are turning and within 24 months you sill see ebay, amazon and others all competing for our business and fees will come down and the ebay arrogance will evaporate . ebay has the nerve to talk about a good buying experience yet I have not been able to pull my ebay invoice in over 5 years and all I get is double talk and spin how the yare making improvements to the site. Some pleasurable buying experience they give me

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: ma

Thu Jun 5 23:22:30 2008

As much as I hate to agree with my old buddy RLH, HE is the one that hit it on the head. It isnt what ebay/paypal allow. If microsoft does the payment thing it WIll NOT be on ebay. They will pair up with another auction service. timing is perfect with all the unhappy sellers on ebay. I want google to go for it and they just may. unless ebay has bought them off. Since I live in the land of Bill Gates and Microsoft and respect their business and personal values I would be thrilled to be involved in their enterprises. Sorry ebay. 9 years of hard work and always supporting and defending and you kick me in the teeth. How wrong can ebay and paypal be? ma

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: koolrags@gmail.com

Thu Jun 5 23:23:20 2008

Oh Happy Day......Competition is definitely needed. I mean a NEW branded Auction Site. With all that goes with it. A Google or Microsoft venue would be an instant hit....Bring it on.....

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: martin

Fri Jun 6 03:07:15 2008

If microsoft is going to make a Paypal-killer, they might as well make an ebay-killer.

The strange thing is that all these new anti-ebay auction sites promote or at least allow the use of Paypal. They do this simply because Paypal is the only real international payment system. Google checkout only accepts USA.

The Payment system that is also quite popular in europe is www.moneybookers.com but i don't think it accepts usa-based customers.

Microsoft should open their own auction site with non-greedy fees and then also provide their own international payment system. That would send shivers to eBay.

Cheers!

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: Michael G

Fri Jun 6 06:17:41 2008

Paypal should be worried because their customer  service is so bad.  They must pay peanuts because all the staff are monkeys!  

When one has a problem all they can do is repeat their standard policies.  No attempt to solve the problem.  

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: MyStoreRewards

Fri Jun 6 06:33:15 2008


Ina,

You missed this one completely.  This move does NOT portend Microsoft's entry into the payments space.  

The only reason MS signed this deal is to execute its Cashback Live search payments through various methods.

The Cashback Live program is MS's new model for trying to beat Google at the adsense game.  MS will ''reward'' buyers for starting their search using MS's search engine instead of Google.

The major flaw in Cashback Live is the friction and cost to ''pay'' the reward back to the buyer.  This move by MS is simply a way to make that cost lower.

Trust me -- I know all about how to run reward programs and this move is solely about MS improving their Cashback Live program.

Brian

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: tj

Fri Jun 6 06:36:53 2008

Microsoft is the one with the balls to break Paypal...Nice one Bill, smart move & remember to keep the fees low

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: Peter Leeflang/CEO of Leeflang Archives Corporatio

Fri Jun 6 08:43:20 2008

A ruse from MS, preceding a possible bid for Ebay/Paypal? It would put Ebay's management under pressure not to 'overask' the sale price, like Yahoo did.

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: Start-Selling-Online.com

Fri Jun 6 09:39:01 2008

Microsoft is just as awful as a company as  Paypal, but I hope Microsoft sues Paypal over the payment processing on Ebay.

That will give Google Checkout the opportunity to step in an take over.  

If any of you have used Google Checkout before I'm sure you are well aware that it totally blows Paypal out of the water.

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: stuart

Fri Jun 6 12:33:48 2008

@ All: I just can't believe how naive some of the comments on this board are! Paypal has years of experience and has millions of users, even the smart people at google (despite an investment of millions) failed to deal PP a blow, Google Checkout is aching & bleeding and will not succeed in beating Paypal. It's not that aesy to beat a monopolist, it takes more than $$$. If MS really were interested in online payments, their best move would be to acquire eBay incl Paypal instead of building a competing system. You read it first here... Buy eBay stock now! ;-)

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: dreaming

Fri Jun 6 13:28:33 2008

Just dreaming....what if eBay is doing all these stupid moves so they can avoid all the problems that they never tried to fix? Do you think they want to sell out and lower the stock price on purpose? Microsoft is not perfect, but it would be alot better than what we have been dealing with for the last 6 months. If Microsoft would get Yahoo and eBay, would that be such a bad thing?

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: Synonymous

Fri Jun 6 16:55:21 2008

It'll take a Microsoft to get the ball rolling in a federal lawsuit anti-trust lawsuit regarding eBay's vertical monopoly with PayPal.  Google, as its tea-party pull-out demonstrates, has no backbone.

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: rydan

Fri Jun 6 17:24:35 2008

If eBay refuses Microsoft couldn't IE refuse PayPal?

Latest PayPal Killer Could Be from Microsoft   Latest PayPal Killer Could Be from Microsoft

by: Steve

Tue Jun 10 08:50:59 2008

I have always hated Microsoft but now Ebay/Paypal seems even worse! Good luck to Microsoft to brake the monopoly.
I would love to see Google do something but as someone else has  stated they really seem to have no back bone for a fight......nice guys Im sure but they dont seem to have any balls,lol



Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.