Everyone has been waiting for Google to release “Google Wallet” or “GBuy”, in the end we get Google Checkout. The idea of a payment system online is not new by any stretch of the imagination. What’s interesting about what Google is doing is their tie-in with advertisers.
What is more, for every $1 a company spends on search advertising, Google will waive the fees on $10 worth of purchases. Factoring in the 2 percent fee, that represents a rebate of at least 20 percent of advertising spending. (NY Times)
The standard rate for Checkout merchants will be 2% of the sale plus 20 cents – compare that to Paypalâ€™s standard rate of 30 cents plus 2.9% of the transaction. Google is hoping that this will encourage people to buy from smaller merchants, and give them more access to information on both the buyer and seller.