Google Wallet, the new online payment system that is still in development has been rumored to be a rival to eBay’s Paypal online payment system. Since rumors of the clash have been flying around for the last week or so, Google CEO Eric Schmidt, decided to step into the spotlight for a few moments and squash the rumors.
Apparently, Google Wallet, will not offer a stored-value payment system, like PayPay does. With this kind of system, money is stored temporarily in a PayPal account during the transaction. This stored-value payment system is how PayPal has gotten in trouble and faced many regulatory hurdles in many states. The number one complaint is that the stored-value system is a function of a bank.
Google does not intend to go down this road. According to Schmidt, “The payment services we are working on are a natural evolution of Google’s existing online products and advertising programs, which today connect millions of consumers and advertisers.” It looks like Google’s first use for Google Wallet will be to send its AdSense Advertisers electronic payments. Currently, advertisers are paid via company check once per month.
Since eBay is one of Google’s biggest advertisers, it was necessary for Schmidt to address the rumors quickly and directly. As more and more people jump into the Google AdSense and AdWord world and sign up for the new online payment system, it won’t be long before you’ll start hearing television advertisements that say, “What’s in your Google Wallet?”
