This is big. PayPal in talks with Google for Android mobile payments

by MichaelHiles 14 replies
I think the other interesting thing this article reports is that Apple has slipped into 4th place. History repeats itself, this time with mobile devices.

PayPal Talking With Google About Handling Android Payments - Bloomberg

EBay Inc.’s PayPal business is in talks to add its payment service to Google Inc.’s Android smartphone software, making it easier for users to pay for applications, three people familiar with the matter said.

Users of Android phones, such as Motorola Inc.’s Droid X and HTC Corp.’s Droid Incredible, may be able to pay for apps with PayPal as soon as this year, said the people, who declined to be named because the discussions aren’t public. Customers currently pay via credit card and Google’s Checkout service.

By adding PayPal, Google would give app developers another way to get paid, potentially making them more likely to create software for Android. While Android phones are beginning to outsell the iPhone, Apple Inc. still dominates in apps. There are more than 225,000 apps available for Apple devices, compared with about 70,000 for Android.

Apple iTunes users can buy apps with one touch because their payment information is already stored. Google offers similar features through its Checkout service, though it isn’t as popular as iTunes or PayPal, creating hassles for new users. By adopting PayPal, which has 87 million active accounts, Google may attract more paying customers.

Why Fight?

“It’s clear that PayPal has been making huge strides in mobile,” said Maribel Lopez, founder of San Francisco-based Lopez Research, which tracks the mobile industry. “From Google’s perspective, they just haven’t won the war on this. Why bother fighting it?”

Anuj Nayar, a PayPal spokesman, and Google spokeswoman Shari Yoder Doherty declined to comment.

The talks between the companies continue and may not lead to a deal, said the people familiar with the discussions.

PayPal added 1 million new accounts each month last quarter and made up 37 percent of EBay’s sales. Net revenue at PayPal rose 22 percent to $817 million in the period.

EBay, based in San Jose, California, fell 9 cents to $21.50 at 4 p.m. New York time on the Nasdaq Stock Market. Shares of Google, located in Mountain View, California, dropped $5.66 to $486.35.

Android has become the most popular smartphone software in the U.S., overtaking the iPhone and BlackBerry, research firm Gartner Inc. said yesterday. Worldwide, Android ranks third, behind Nokia Oyj’s Symbian and the BlackBerry, according to Gartner. Apple is in fourth place.
#main internet marketing discussion forum #android #big #google #mobile #payments #paypal #talks
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  • Profile picture of the author DogScout
    "PayPal added 1 million new accounts each month last quarter and made up 37 percent of EBay’s sales. Net revenue at PayPal rose 22 percent to $817 million in the period.

    EBay, based in San Jose, California, fell 9 cents to $21.50
    "

    Someone is not paying attention, or doesn't like the Google/Paypal idea.
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  • Profile picture of the author tecHead
    hmm.. with PayPal's recent major move into the mobile payments arena, it only makes sense.

    I gave Google respect with their announcement to kill off gWave; as it just wasn't performing as they had hoped, (good business). Perhaps, (if they're smart enough), they'll do the same with their checkout service and work a deal with PayPal as an alternative.

    Now THAT would be huge.
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    • Profile picture of the author MichaelHiles
      Originally Posted by tecHead View Post

      hmm.. with PayPal's recent major move into the mobile payments arena, it only makes sense.

      I gave Google respect with their announcement to kill off gWave; as it just wasn't performing as they had hoped, (good business). Perhaps, (if they're smart enough), they'll do the same with their checkout service and work a deal with PayPal as an alternative.

      Now THAT would be huge.

      Or maybe just buy ebay and paypal.

      That would be even 'huge-er'.
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      • Profile picture of the author tecHead
        Originally Posted by MichaelHiles View Post

        Or maybe just buy ebay and paypal.

        That would be even 'huge-er'.
        LOL... like that would happen. Google ain't that big/rich; (although we're not privy to their true financials -- i.e. their ability to influence VCs to contemplate such a deal).

        But, even if they could... eBay would never go for it...

        Agreed; would be huge-er, though lol
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        • Profile picture of the author Cash37
          Originally Posted by tecHead View Post

          LOL... like that would happen. Google ain't that big/rich; (although we're not privy to their true financials -- i.e. their ability to influence VCs to contemplate such a deal).

          But, even if they could... eBay would never go for it...

          Agreed; would be huge-er, though lol
          eBay has been struggling to grow their earnings for a while now. I don't think they are above acquisition.

          "Every man has a price"
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        • Profile picture of the author MichaelHiles
          Originally Posted by tecHead View Post

          LOL... like that would happen. Google ain't that big/rich; (although we're not privy to their true financials -- i.e. their ability to influence VCs to contemplate such a deal).

          But, even if they could... eBay would never go for it...

          Agreed; would be huge-er, though lol

          How much stock does the Big Goog have in treasury?

          If I held eBay, I'd take some Goog stock in trade.

          They don't NEED VC money. They can print their own by issuing more stock. That's the virtue of being a public company - printing your own cash.
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          • Profile picture of the author tecHead
            Originally Posted by Martin Luxton View Post

            EBay
            Market Capitalization- $28.21 Billion

            Google
            Market Capitalization - $155 Billion

            Tencent
            Market Capitalization - $36.5 Billion

            Tencent are aggressively looking for acquisitions and, with some help from the Chinese government, they might just turn their eye on EBay.


            Martin
            Originally Posted by MichaelHiles View Post

            How much stock does the Big Goog have in treasury?

            If I held eBay, I'd take some Goog stock in trade.

            They don't NEED VC money. They can print their own by issuing more stock. That's the virtue of being a public company - printing your own cash.
            ok.. ok, I concede that the possibility is there... yet, I still think (IMHO) such a deal would go the way of the Microsoft/Yahoo debacle with eBay taking the Yahoo stance.
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        • Profile picture of the author Martin Luxton
          Originally Posted by tecHead View Post

          LOL... like that would happen. Google ain't that big/rich; (although we're not privy to their true financials -- i.e. their ability to influence VCs to contemplate such a deal).

          But, even if they could... eBay would never go for it...

          Agreed; would be huge-er, though lol
          EBay
          Market Capitalization- $28.21 Billion

          Google
          Market Capitalization - $155 Billion

          Tencent
          Market Capitalization - $36.5 Billion

          Tencent are aggressively looking for acquisitions and, with some help from the Chinese government, they might just turn their eye on EBay.


          Martin
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  • Profile picture of the author Caleb Spilchen
    It's a great idea...

    Right now I have a Blackberry and you can pay for apps with Paypal...
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    Caleb Spilchen

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  • Profile picture of the author Cash37
    Meh... I think the push towards mobile is very manufactured and is going to be fools gold for a lot of advertisers. People on their phones aren't in buying mode, they're in entertainment mode. Maybe this is huge for app makers. But not direct responsers IMO.
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  • Profile picture of the author cashmagnet
    You were right this is big news
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  • Profile picture of the author rapidscc
    From these recent developments, I guess we can really expect
    mobile marketing revolution soon.

    First, Big G released Andriod, then acquired admob for $750 million, and now
    they are in talks with paypal about mobile payments.

    Hmmmm..This could be big.
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  • Profile picture of the author KenThompson
    Say it goes through - google and paypal deal for payments. About
    a year later, paypal limits google's account. What a hoot that would
    be.


    Ken
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  • Profile picture of the author hectoth
    Agreed that integration of Android, Admob, Paypal, soon they gonna rule the mobile advertising i guess and many others to follow like mobgold, and inmobi.
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