Released: June 29, 2006

Google introduces online ‘wallet’ payment system

Source: By Saul Hansell, New York Times (Free Registration)

In its quest to “organize the world’s information,” Google now wants to keep track of your credit card number and where you live. The company is introducing Google Checkout today, a service that will allow users to make purchases from online stores using payment and shipping information they keep on file with Google.

Google’s aim, said Eric E. Schmidt, the chief executive, is to make it easier and faster for people to buy products advertised on Google — thus attracting more advertisers.

“The goal here is to make it be one nanosecond from the time the customer decides to buy to the time the transaction is complete and the product is on the way,” Mr. Schmidt said.

For consumers, this sort of service, often referred to as an online wallet, is hardly new. Microsoft, AOL and Yahoo have offered similar wallets, which proved to have limited appeal. While the PayPal service of eBay has attracted widespread use, it offers additional features like the ability to transfer money from checking accounts.

But for merchants, the service comes with a twist: Google will waive some or all of the transaction fees for companies that buy advertising from it.

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