eBay and Google Checkout Already Locking Horns

Citing security threats to the consumer, eBay has banned its buyers and sellers from using the recently launched Google "Checkout".

Largely considered to be a future threat to eBay's PayPal service, Google Checkout is considered by Paypal as an "official payment service not permitted." Like bounced checks bitterly taped to the counter in an old convenience store, this move my PayPal is seen by many as a cheap way for eBay to prevent the growth of a major competitor. (Source: zdnet.com)

Reminder: What is Google Checkout?

Google Checkout was recently released as a rather simple "online wallet", allowing users to store account information online. It in no way (yet) presents a significant threat to PayPal, but many Google followers believe it will soon increase the options for Checkout and present the potent challenge eBay might already be fearing.

Insiders reported on the possibility of Checkout's denial months before Google had even released a name for its online payment service.

At that time, the possibility of eBay resentment towards Checkout had made itself apparent in the auction site's new payment policy, which informed users that only services with a "substantial historical track record" would be accepted in the future. (Source: blogspot.com)

Fast Forward to Summer '06...

More than six months later, this is indeed the official line eBay representatives are taking when questioned about their refusal to incorporate Google Checkout.

eBay has released a statement proclaiming that, "[s]afety and convenience are at the core of eBay's policies toward payments." Simply put, Checkout does not meet such criteria. (Source: news.com)

With that said, Checkout sticks "out" like a sore thumb amongst a list of rejected payment services. And while Canadian Tire money remains a viable way for eBay customers to meet payments, many tech insiders are aggravated -- and in no way puzzled -- by the move.