Google's PayPal talks spell doom for Checkout

Caroline Gabriel, Rethink Wireless
18 Aug 2010

A wide range of billing and payment options is critical to any app store, especially as smartphones spread to new economies and different age groups. While Apple may be studying an iPhone m-wallet, Google is reported to be in talks with eBay's PayPal to bring the well-used internet payment option to Android Market.

As with social networking, this sees Google backing away from offering every key web service under its own brand. A PayPal deal would be a tacit admission of defeat for Google's own alternative, Checkout.

And while most analysts were positive about the idea of bringing PayPal's large user base to Android, many believe the real boost would come from supporting carrier billing consistently across the world.

RIM's offering of PayPal on BlackBerry has hit teething troubles in terms of performance, while carrier billing has repeatedly been proven to be the biggest driver for converting phone purchases.

Nokia has been the most successful to date in creating carrier deals for Ovi Store, building on a long history of operator relationships that Google lacks.

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