Six years ago Yahoo! applied for a patent for a person-to-person payments system, and were finally awarded the patent last month.Â A spokesperson for Yahoo! says that they are “not ready to discuss” the new product at this time, although it is likely to be unveiled before the fall.
“It’s not going to be months.Â Maybe a couple of weeks – I can’t say for sure,” the spokesmen said.
Few details are known about the payments system, but Yahoo! is no stranger to the P2P business having operated the PayDirect platform from 2000 to 2004.
PayPal currently dominates the P2P payments market, and Google recently incorporated a payments system into Base and Video.Â Yahoo!’s system would likely compete with the two.
Experts believe that Yahoo! may integrate the payments system with their advertising, whereby users who click on ads can complete purchases using the payment system.Â In turn, Yahoo! could also provide the advertisers with valuable information gained through the purchases.
One of the biggest hurdles that Yahoo! will have to overcome is how to combat and detect fraud.Â It took years for PayPal to get it down, and it is something that they are constantly fighting.