Despite the fact that Checkout service will stop working only on November 20th, this news has shaken the business market. Some experts consider the situation as Google’s defeat in the fight with PayPal for the online payments market. At the same time some consider this a reasonable move for the company. Before making conclusions it is important to understand what caused Checkout downfall and what will be its impact on the market.
Why has Google Checkout failed?
When in 2006 Google launched Checkout service, it took the same policy as with the previous products. In the result Google has never actively promoted the product to the users, has not advertized Checkout’s main features. At about the same time similar services appeared, such as PayPal. Thanks to their aggressive marketing campaigns most of the people at least knew what this product is for, even if they didn’t use it. The result is obvious. In seven years the services like PayPal occupied the bigger share of the market while Google Checkout is leaving the game.
Checkout received one more serious blow when eBay, the biggest internet-auction, put Checkout on a list of unacceptable methods of payment. This move had no direct relation to Checkout though eBay is also a PayPal co-owner along with Amazon. The fact that there were no own promotion campaign of Google product only sped up the process and discouraged the service consumers.
What is happening now?
Along with the plans to close Checkout completely, Google put a lot of efforts in filling the Wallet’s rate. Here we can mention large-scale upgrades of Google Wallet, including service integration with Gmail and Chrome to provide fast access and speed up online payments. Total Google Wallet security was improved and the risk of fraud was minimized.
Google did its best to smooth the transition period for the sellers. Current user bases of the service were divided into three categories. All sellers selling physical goods, using Google Checkout service, will have to look for the alternative service for their business. Besides, Google cooperates with such services as Freshbooks, Shopify and Braintree Payments, aiming to help those sellers who used Checkout in their business.
As the sellers often switch from one service to another, Google gave certain benefits when using the above mentioned services. This switch-over can be a problem as Google is more available internationally comparing to these three services. It means that there is a chance that some sellers can be left without a safety net after Google closes Checkout and they can be seriously affected.
Second category includes people selling digital products using Checkout. Unlike the first category the switch from Checkout for them happens quickly enough. These sellers will gradually switch to using Google Wallet and this switch-over will not affect their business critically.
The third category is the sellers selling their products through Google online markets, like Google Play. They have never been fully dependent on Checkout, so the current situation will not affect them at all.
What alternatives do we have?
Seeing Checkout closing, it would be useful to know what alternatives the market provides. Fortunately, we have a few full-fledged competitive options at our disposal. Let us consider the most popular of them.
Mentioning the biggest competitor of Google as the alternative can seem tactless, but the fact remains – PayPal is the big player in this game. PayPal is one of the oldest and the most popular online services on processing payments on the market. Users are offered three different types of accounts with different options; also the customers can get certain benefits if they link their account with the eBay-auction services.
2Checkout is a very competitive service that supports over 15 languages and 26 different currencies and countries. It also offers several different levels of service depending on your type of business which makes it more convenient than PayPal. For example, the company offers two types of options that the users can choose according to the size of their business. Direct Checkout option speeds up the process of service usage as it gives the form with less number of fields to fill in. Dynamic Checkout option is more acceptable for the consumer who uses transactions.
Skrill, formerly known as Moneybookers, is a service used by such services as oDesk for payments and transactions. This service has a great number of subscribers – more than 50 thousand sellers use it for their needs.