Google is expected to unveil its long-anticipated online payments system later this month on June 28, according to an analysts report.
The service, dubbed “GBuy”, will process payments between shoppers and merchants. Eventually, it might also expanded to include consumer to consumer payments.
“GBuy has the potential to be as important to Google as Google Maps, or Google News, and there is very little that competitors can do to thwart its success,” says Jordan Rohan, RBC Analyst.
The product will launch in “beta” phase, and during this period Google will not charge merchants service fees. Further down the line, Google will most likely institute a 1.5% to 2% fee for transactions, which is similar to or slightly less than what rival Paypal charges.
On search result pages, Google will designate each merchant that accepts GBuy as a “Trusted GBuy Merchant”.
Google will benefit from the service not only monetarily, but also by their access to new information. The payments system captures all transaction data flow, allowing Google to see which categories and keywords produce the most hits and sales.
Analysts predict that GBuy could be “revolutionary”, driving more precise targeting in future searching. And although GBuy looks to be in direct competition with Paypal, Rohan believes that in the short term GBuy is more negative for eBay than it is positive for Google. Longer-term, it could be a game-changer.”