Eric Schmidt speaks up on GooPay, denies Google wants to compete with PayPal

Posted by Richard Koman - June 21, 2005

AP reports that Google CEO Eric Schmidt has denied that Google is launching a competitor to PayPal, even as he confirmed that Google is in fact readying some manner of payment system.

"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," he said. That's not much to go on but I would guess that Google's payment system would allow them to manage a cost-per-sale advertising model, in which they can integrate advertising placements, clickthroughs, sellthroughs, and user behavior.

In any case, Schmidt went to pains to disabuse the notion that GooPay would be a PayPal killer. "We do not intend to offer a person-to-person, stored-value payments system," he told AP. It's pretty unusual for Google to break its silence on unannounced initiatives. Perhaps they were concerned about the rumormill unnecessarily punishing eBay's stock?

WSJ: Google Readying PayPal Competitor

Follow @tomforemski

Permalink | Subscribe free | Categories: SearchWatch

PRE-PAY FOR WP ENGINE HOSTING FOR 1 YEAR AND GET 2 MONTHS FREE!