GBuy Take a Bite Out of eBay Stock
Google Inc. is expected to unveil on Wednesday an online payment system called GBuy, which analysts say will allow merchants to accept payment for services and could become a broad-based alternative to eBay’s PayPal, the dominant system.
Analyst Danny Sullivan, editor of SearchEngineWatch.com, said he expected Google to make the announcement on Wednesday and to target online merchants rather than consumer-to-consumer payments, which is PayPal’s traditional strength.
Google is targeting sites that may not be able to take credit cards, which is a common problem in international markets, he said.
“It may be something that large businesses internationally who do not really have a way to handle online payments from customers might want to use,” Sullivan said.
Shares of eBay fell almost 5 percent to $28.25 on Tuesday on media and analyst reports of GBuy and lingering worries that growth at eBay is slowing. Google’s shares fell $1.90 to $402.3.
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