Google’s PayPal Could Be Big

Google’s online payment service could prove to be a gold mine for the search giant, analysts say, as the company begins to allow consumers to use the service to shop on Google Base, an online listings site likened to Craigslist.

With the Google Payments service, the company could create a significant new revenue stream, said UBS Investment Research analyst Ben Schachter. He noted that Google payments service could eventually work with other vendors, just as eBay’s payments service PayPal is used by a variety of merchants.

“In our view, this is a clear shot across PayPal’s bow,” said Mr. Schachter, in a research note.

Google Base is a site where people can post any type of content along the lines of online listings site Craigslist (See Google Expands Search All Over). But unlike on Craigslist, on this site buyers will be able to purchase items with credit cards, thanks to the payments service. For sellers, Google is integrating the processing of transactions with the management of items.

whole story