Safa Rashtchy released a note today (PDF only, no link) saying his sources are confirming the Journal’s story, and reminding us that he earlier noted that Google may launch a listings service as well.
• We had noted earlier this year that we believe Google is likely to introduce both a listings product (similar to “Craigslist” but much more powerful) and a C2C/B2C transaction and payment platform. If Google Wallet indeed launches this year, it will be initially aimed as an additional service to over 200,000 Google merchants, many of whom also use eBay.
• Google will of course be facing significant hurdles to compete with the well-established PayPal, which has more than 72M users. However, we note that when Google entered the paid listing business, it also had to catch up with a much more established Overture, which it eventually replaced as the number one provider of paid search listings.
2 thoughts on “Safa: Google Wallet Likely, Listings Service Also”
PayPal has many users, and also many unhappy users. They are effectively a monopoly (for eBay) and behave like one. Their customer service is poor, and they have many irritating and inflexible rules.
These conditions suggest a company ripe for competition. Many eBay sellers will happily switch to a better service, especially if it offers better rates. Google need not fear eBay; especially since Google is better managed.
For e-tailers, Google is like a drug. It makes you feel real good about yourself (cause its profitable and helps your business grow), but you have a sneaking suspicion that it is really the one in control and one day you might need it more than it needs you. I guess that day has come 🙂