Google Checkout – why is it gone and what does it mean for the industry?
What has happened today?
Today (May 21, 2013) Google has announced that they are closing Google Checkout (it will be retired on November 20th, 2013). It came as quite a shock for many merchants, who used to use this payment option. Before I start to comment on that move let’s talk about the history of this product.
The short history of Google Checkout
Google Checkout is an online payment processing service provided by Google. This service became available in the United States on June 28, 2006, and in the UK on April 13, 2007. It was free for merchants until February 1, 2008. What’s interesting, NGO organizations that collected less than 3000 USD per month online could use Google Checkout without any fees. In 2010 Google Checkout was banned by eBay as a payment option. However it didn’t stop Google from developing their solution. In the meantime Google has created Google Wallet – their option for mobile payments (via NFC communication). It allows users to pay online as well as offline using their smartphones.
The future of Google payment solutions
But as I mentioned before today Google announced the retirement of Google Checkout this November. This year Google cut off Google Reader and a few other products. It’s quite visible that they want to focus on those areas where they are market leaders: online advertising, conversions and big data management. Shopping cart abandonment on mobile devices is now an outrageous 97 percent and Google wants to change it, because this is the biggest challenge for mobile payments right now. They will focus on Google Wallet and additional functionalities. On May 15, 2013 they announced that users will be able to attach money to their emails using Google Wallet. Moreover, with Google Wallet API you are able to automatically fill in payment forms in Chrome or Android. Google Wallet Instant Buy is already integrated with services like: Airbnb, Expedia or Booking.com. It lets you reduce the checkout process to 2 simple steps. So far Google doesn’t charge for this service and it makes the platform open for merchants and partners.
But what if you still need classic online payments?
Well, they say: if you’re getting checked out, check in at PayLane. :) We welcome all European Google Checkout users! What’s more, if you do it now, you’ll get something more: one month without PayLane fees. It’s a win-win situation! :)
