Brief: Google Far Behind PayPal At The Online Checkout - InformationWeek
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Brief: Google Far Behind PayPal At The Online Checkout

To close the gap, it's paying people $10 to try it.

Google may be the first choice in search, but it's on very few minds when it comes time to pay online. PayPal was seven times more popular than Google Checkout in 2006, a recent survey by investment firm JPMorgan finds.

Just 6% of the 1,100 online shoppers JPMorgan surveyed had used Google Checkout, compared with 42% who had used PayPal. The report suggests Google's typically meticulous attention to the user experience misfired for Google Checkout: 65% of online shoppers using credit cards and 44% using PayPal report Good or Very Good service experiences, while only 19% using Google Checkout did.

Google's getting its wallet out to change its profile. It's been offering a $10 credit through Feb. 15 that new users can use with merchants that accept Google Checkout. The promotion began earlier this year, and last week was briefly touted on Google's home page.

The report isn't all bad news for Google. JPMorgan found Google Checkout users are younger and more affluent than PayPal users, a statistic potentially more appealing to online merchants.

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