Google Checkout vs PayPal : JPMorgan Report

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JPMorgan as put together an overview of a study they recently undertook where they surveyed over 1,000 consumers to gauge their online spending behavior, adoption rates of Google Checkout, and the associated implications for PayPal.

Here are the key findings:

* Google Checkout Adoption hits 6% in first year. Our survey suggests that in less than a year, Google Checkout has penetrated 6% of consumers, according to our survey.

Although Google’s adoption rate is considerably lower than PayPal’s (42%), we believe the product had a good start. We believe Google’s aggressive promotions and discounting spurred the respectable launch.

* Google Checkout Users Skew Male, Affluent, and Young. Our survey suggests that Google Checkout penetration rates are 2x higher among men.

Further, a hefty 34% of Checkout users have incomes over $75K (compared to 25% for PayPal, and 20% for all online shoppers). Finally, Checkout users are substantially younger (57% under 35 years old) than either PayPal (36%) or credit card users (35%).

* But Google Checkout Needs to Work Out Some Kinks. Despite 65% of credit card users and 44% of PayPal users reporting ‘Good’ or ‘Very Good’ service experiences, only 19% of Google Checkout users said the same. As such, we believe Google may need to shore up its payment operations before building lasting user loyalty.

* PayPal Maintains Its Leadership Position. PayPal’s 42% penetration rate in 2006 was 7x that of Google checkout. Additionally, 43% of respondents indicated that they would continue to prefer PayPal over Google Checkout, compared to only 2% that reported the inverse. Finally, PayPal maintains superior brand awareness over Google Checkout. More than 56% of the respondents in our survey reported having no familiarity with Google Checkout. We think Google will need to continue aggressive promotion in 2007 to increase product visibility.

Read the entire report (PDF file) at:

Google Checkout vs. PayPal ; Google Launch Shows Promise, but PayPal Still Dominates

Loren Baker
Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing strategy & development agency.
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  • Brian Auer

    I’m forming an online business, and I’m very drawn to PayPal because they allow me to process credit cards without my customers signing up for thier service. In addition, I can pay a small fee and process thier cards right from my site – seemlessly. I’m still researching Google Checkout, but I’m getting the impression that they don’t offer the same flexibility. I love google products and I’ll probably still offer Checkout as an option, but I’ll still be relying on PayPal for credit card users who don’t want to sign up for something.

  • Istok

    I hope Google hears you Brian and they probably will, they are a dynamic company. I, frankly am sick of Paypals fees. Their fees, along with Ebays, take the profit out of selling certain things on Ebay.

  • google sucks

    google checkout is useless. they offer no reports compared to paypal which offers ways of reporting and tallying while google is useless and you have to add up monthly sales by hand and chargebacks by hand. pretty useless for someone like me who does hundreds of transactions a month.

  • Mario

    I have recently had 2 bad experiences Plus 4-not so good ones. Witch I had to do a whole lot of online work and phone calls with Papal. After being a 100% good standing customer since 2001. To make a long story short. I have been making at least $2,500.00 dollars a month. I had a real good product that I was selling on E-bay. I have had 2-big charge backs and they gave over $300.00 dollars back twice to the buyer. I called up PayPal to complain about the 2-charge backs. I told them to check my E-Bay status of being 100% all positive feedback, over 120 positive sales, So why would they side with the buyer witch only they had 1-positive transaction and the other seller had 6-positive feedback plus -1 feedback. There customer service is real bad. All they could tell me is (you have to go and track down the buyer about the problem and we cannot give you no information on the person who bought your product only that their money in their bank was not good now. Even after the transaction went through a month ago.) I was so mad!!!!!!!!!! Argggggggg!!!!!!!!!!!!!!!!!! I asked to speak to a supervisor then being on hold for over 15-min the phone hags up on me. I call back after being on hold some more. I talked to a supervisor and she said the same thing. My friend had the same problem with PayPal after he started to make real good money as well. I checked up on UTube and different people said the same thing. So if you don’t want to have no problems with PayPal do not start to make a lot of money. Then you should be fine.

  • Mario

    So now I will try out Google Checkout. There brand name is good.

  • Istok

    If it was a “never came in the mail” issue Paypal should say tough luck get insurance next time.

  • Mario

    Nope the issue was with 1- transaction went through about 1-1/2 months ago for $300.00 I got my money and the buyer got his product. So everything was good I thought. Then 1- ½ months later PayPal takes $300.00 from my account. Witch I did not have in there so my account became negative. PayPal said they could not give me any info on the buyer. Just something about the money was not good in the buyer’s bank account.
    “””That’s What They Told Me”””
    And that I have to track the buyer down on my own. Witch the buyer address is in Italy and the buyer was no longer an E-Bay member.
    Before that another buyer put in a dispute, saying he did not receive his package from me. So PayPal takes $300.00 out of my account. Then PayPal give the money back to the buyer. The problem was with Customs had held up his package for a little bit longer. Then the buyer e-mails me and says Ho I got my package now. Then after that he never replied back to me about paying back the money to me.
    These e-bay members feedback was only 1-to 6 positive. I’m 100% Plus over 120 transactions. Plus I had Insurance, Tracking Numbers, Receipts, and Customs Receipts. And PayPal did not want to hear that.
    All this started happing when I started making a lot of sales. I am going to be having a new business now so I am going to apply for a full Merchant Account for protection from chargeback’s and other positive things that a full Merchant Account comes along with. But for now I am going to try out GOOGLE Here is my site

  • Midnex

    To the person who named “Google Sucks”

    is the site describing how to do it all. Furthermore this has been around since July 2006.

  • google sucks

    I am a tosser, I should have done my research before posting that. I blame it on being abused by my grandpa when I was little.


    so which one is best guys? i’m still undecided, have used paypal in the past though…

  • NoChoice


    Why do you have to pick only one? If I were a merchant, I would not leave PayPal out just because they have such a huge market share. At the same time, if Google Checkout saves me money, I’ll use them too – why not? There is no penalty for accepting multiple payment methods.

  • Cheap Merchant account

    Interesting stats from JP Morgan, thanks for that.

  • Nathan

    Very informative, thanks. I’m planning to implement both on my men’s jewelry website, though I have Google Checkout ready to go for my relaunch. It was so easy to do.

    As for Google Checkout not automating much of the bookkeeping, that’s good to know about. But even without the fix posted by Midnex, it’s better than my prior merchant service. They wouldn’t even give me a line item breakdown of transactions made over the last 90 days.


  • Juhi

    Paypal protection policy is best in this world.

  • Juhi

    Paypal protection policy is best in this world.

  • Nikki

    i have used paypal in pass and decided to give Google a try. the thing i like a bout Google is that you can apply coupons to the cart, for a short or long period of time. say for instance an item sales for 20 dollars and the customer clicks the add to cart button Google automatically deduces the dollar amount or percentage amount. Also if you are selling to a certain group that group can put in a promo code at check for the discounts.