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SURVEY: Gbuy vs. PayPal - Will You Switch?

Posted on 6.13.2006

Online merchants the Web over are anxiously awaiting the release of Google's new payment system, dubbed Gbuy. With millions of websites actively using PayPal to manage and process payments from consumers, Google's Gbuy will have to be revolutionary to draw users away from the vast existing market share of eBay's PayPal. Early indications are that it may exceed even the staunchest GOOG opponents' expectations.

Those purchasing items through Gbuy, set for release on June 28, will be taken off the merchant's site to complete the payment - as does PayPal's system. This enables Google to capture e-commerce transaction data, which could result in more precise targeting for advertisers. The scuttlebutt is that on Google's core search results pages, those merchants using Gbuy will be listed as a "trusted Gbuy merchant." Theoretically, this may result in merchants seeing increased click-through rates. On the surface that sounds great, right? Who doesn't want more traffic? If you know about Google Adwords however, you understand the concept of Quality Score (QS) - a portion of Google's bid rank algorithm that lists sites based on the click-through rate their ad receives. If Gbuy were to merge conversion data with Quality Score and bid rank, could bid prices become too costly? Those not using Gbuy and not considered a "trusted Gbuy merchant" could see their ranking position drop and be forced to bid higher on their keywords to remain competitive. 

I expect that some merchants will love it, some will like it, and some will stick with PayPal.

Take the Instant Survey: If you are a PayPal user, will you make the switch from PayPal to GBuy?

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