Google and PayPal – Shootout At The AdWords Corral

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According to an article by Pamela Parker in today’s edition of ClickZ News, Google’s new payment system will debut today. Most had anticipated its release yesterday. Pamela’s article has all the details on “Checkout”, so check it out (sorry, lame pun) if you’ve been following the debate on whether or not PayPal will be crushed by the Google giant.

The one area that will impact PayPal and other online payment systems right now is the focus on AdWords advertisers as the primary target market for the launch.

“Additionally, AdWords advertisers will receive free payment processing for sales of up to 10 times their monthly spending. A company spending $1,000 in one month for AdWords would receive $10,000 worth of free payment processing the next month. Beyond that, or for non-advertisers, the charge will be $0.20 and two percent of the sale per transaction. PayPal charges 1.9 percent and $0.30 per transaction.”

With an AdWords account, you can already log in and see what you think. Here’s the link.

It may be hard to justify using PayPal for your AdWords account over the new system, given the freebie offer. Plus, Google has come up with just the right formula for payment – one that will challenge PayPal, yet is not a loss leader. There’s going to be some fireworks … and it’s not even July 4th yet!

About the Author

Frances Krug has worked in market research since graduating from UCLA with an MA and CPhil in Latin American history. As an editor and online content provider for the last 7 years, she currently is Associate Editor at iNET Interactive, where she also directs Search Marketing Standard's email marketing program.

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