Friday, June 30, 2006

Check Out Google Checkout

Google is at it again with Google Checkout

Google Checkout

Google has come up with another innovative but disruptive concept that is going to impact how we pay for our online purchases. Initially, available only in US, Google Checkout service will allow users to make online purchases with the information they store with Google. To incent the eCommerce sites to use its service, Google is providing discounts on advertising and transaction fees for those who use its checkout service.

To be sure, Microsoft, Yahoo and Paypal had similar or pieces of this service for a while. Paypal seems to be only survivor with its unique link to Banks. But, Google's service looks to be a comprehensive one. With Google Checkout, once a customer is ready to checkout, they can simply click the Google Checkout button and use the payment and shipping details stored with Google. This eliminates the need to enter financial and shipping information at several places. I played around with this service today (didn't buy anything though) and observed several innovations:
  • Combining shipping & payment details: This seems to be only service that helps you manage shipping and payment details in one place. Also, it maintains a history of all purchases done by in place.
  • Incentive for vendors to use the service: By providing discounts to eCommerce vendors for their advertisements and transactions, there is strong financial motivation for the vendors to use this service besides the Google brand.
  • Promoting companies that do Google Checkout: Google is also planning to promote the users of Google Checkout out putting a unique icon in their advertisements. This is bound to generate more traffic to the site.
What do you think? You check out Google Checkout and let me know..