EcommerceBytes-NewsFlash, Number 3069 - May 21, 2013     1 of 2

PayPal Rival Google Checkout Checks Out

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Google is abandoning its payment processing service called Google Checkout, but it still wants to offer merchants a way to streamline the checkout process for mobile users through Google Wallet.

On November 20th, 2013, Google will shut down Google Checkout product. Merchants selling physical goods will need to switch to third-party alternatives. Merchants selling digital goods may transition to Google Wallet for digital goods, and merchants selling through Google-hosted marketplaces (e.g. Google Play) will be unaffected.

Google said shoppers will not be affected and can continue to use Google Wallet to purchase goods wherever they see the "Buy with Google" button.

Google said the decision to close Google Checkout was not made lightly - "ultimately, we decided our focus is best concentrated on other areas of the payments space."

Google partnered with three ecommerce vendors that will offer discounted migration options:

  • Payment Processing: Braintree Payments;
  • Hosted storefront: Shopify;
  • Email invoicing: Freshbooks.

Google also added a new Instant Buy API that enables merchants to offer a buying experience to Google Wallet shoppers buying physical goods and services on their Android apps and websites, but merchants will have to provide their own payment processing. In addition, the new Wallet Objects API enables merchants to engage their customers with loyalty, offers, and more.

Before Google launched Checkout, rumours abounded of a "PayPal Killer" from Google. But thanks in part to eBay's refusal to accept Google Checkout on its marketplace, and Amazon offering only its own payment processing on its marketplace, Google had a hard time gaining traction into payment processing for online merchants.

More information for merchants is available on the Google website.


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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