Google, PayPal set to cause more competition
(26 July 2011 – Global) Non-bank competition in the payments market will heat up soon, as Google launches its own credit card and PayPal moves offline.
Google is preparing beta tests of a commercial credit card which will be issued to cash-strapped small businesses in an effort to encourage ad spending.
The AdWords Business credit card promises a competitive interest rate of 8.99 percent and no annual fee with the sole proviso that it can only be used for spending on Internet advertising over the search engine.
Brent Callinicos, Google's treasurer, told Reuters that the credit card will be offered to a 'statistically significant' number of people as Google examines the results of how availability of the card affects customer spending behaviour.
EBay's PayPal unit meanwhile - which has just turned in its first US$1 billion (A$986 million) quarter - has lined up trials of a point-of-sale system with a major United States retailer, and plans to have up to 20 retailers operating the service during 2012.
Referring to the initiative during a quarterly earnings call with analysts, eBay CEO John Donahoe, said: 'We're in a strong position in online payments to expand to point of sale. We intend to help retailers grow offline in the same way we helped merchants grow online.'
In the UK, Paypal has already set up an integrated POS system with restaurant chain Pizza Express, through which customers can pay for their bills via an iPhone app.
The AdWords Business credit card promises a competitive interest rate of 8.99 percent and no annual fee with the sole proviso that it can only be used for spending on Internet advertising over the search engine.
Brent Callinicos, Google's treasurer, told Reuters that the credit card will be offered to a 'statistically significant' number of people as Google examines the results of how availability of the card affects customer spending behaviour.
EBay's PayPal unit meanwhile - which has just turned in its first US$1 billion (A$986 million) quarter - has lined up trials of a point-of-sale system with a major United States retailer, and plans to have up to 20 retailers operating the service during 2012.
Referring to the initiative during a quarterly earnings call with analysts, eBay CEO John Donahoe, said: 'We're in a strong position in online payments to expand to point of sale. We intend to help retailers grow offline in the same way we helped merchants grow online.'
In the UK, Paypal has already set up an integrated POS system with restaurant chain Pizza Express, through which customers can pay for their bills via an iPhone app.
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