Google Checkout Discontinuation
Google has announced that on the 20th of November, 2013, it will be shutting down its Google Checkout service. According to Google, the service is being discontinued while the focus on Google Wallet. Google Wallet is merely a place to store credit card information on your mobile phone or in a Chrome browser so you don’t have to type out your payment information on every site.
Not all Google Checkout Merchants will be affected
Below is information stating how Google Merchants will be affected:
- Merchants selling digital goods may transition to Google Wallet for digital goods.
- Merchants selling through Google-hosted marketplaces (e.g. Google Play) will be unaffected.
- Merchants selling physical goods will need to switch to third-party alternatives. (Google partnered with three players in the payment industry to offer alternatives for your eCommerce needs).
Alternatives & Competition?
Amazon recently launched a new payment service called ‘Login and Pay with Amazon‘. This could pose a threat to PayPal, as Amazon already has a significant amount of customer payment details. Customers are also very familiar with Amazon (and trust them), so adopting this new service wouldn’t be much of a hassle for Amazon customers.
Should be interesting to see how this develops in the near future.
Did many companies actually use Google Checkout?
Seeing as most of Google Checkout’s Merchants will be migrating to Braintree, Bill Ready, Braintree’s CEO, would be the right person to find out that information from. In an interview with Pandodaily, Bill Ready said the amount of potential customers migrating from Google Checkout could represent “many many thousands”. Quite a vague response if you ask me. Given Google’s access to invaluable amount of data, I would assume that they have analysed future trends and decided that the discontinuation of Google Checkout will be a more profitable approach. Personally, don’t think there were that many users on Google Checkout (compared to PayPal).
My Point of view?
I have never really used Google Checkout so I can’t really say anything much about the service. But one thing I know is that it will affect a lot of customers especially those in developing countries who found Google Checkout more accommodating than PayPal.
One last thing, I guess PayPal successfully fought off the competition 🙂
If you have any comments regarding Google Checkout, feel free to post a comment.