Google Checkout - NY Times

Interesting article in today's edition of the NY Times (free registration required) re Google Checkout...

When Google/GOOG introduced Checkout in June, it was seen as a formidable rival to PayPal. And with Google aggressively promoting Checkout during the holiday season and beyond, its use with some merchants has already surpassed PayPal's. But Google's plan for Checkout has always been about more than online payments. The service is a calculated effort to expand Google's base of advertisers, which provide the bulk of the company's revenues. And Google has made a substantial financial commitment to the service's success. Goldman Sachs estimates that Checkout promotions will cost Google about $20 mln in the current quarter. The campaign to promote Checkout also says something else about Google: As rivals Yahoo (YHOO) and Microsoft (MSFT) are working on getting the basics right in their search and advertising systems, Google is racing ahead to consolidate its lead. "I believe that Google's advantage is widening with time and this is one example," said Scott Devitt, an analyst with Stifel Nicolaus. "Checkout could be a game changer, and the competitors are doing nothing of the sort." Google has not released figures on the number of Checkout users. Still, there are signs that with the heavy promotions, the service is making significant inroads.

-- David M Gordon / The Deipnosophist