By George Anderson
PayPal watch out. There's a new online payment system in town and it plans on capturing the data from internet transactions to develop more precise target marketing to consumers using the service.
The new service is GBuy from Google and, according to at least one analyst, Jordan Rohan of RBC Capital Markets, this aspect, "If harnessed (correctly)... could be revolutionary."
Some merchants may be concerned about the data captured because of the fear it may drive up the cost of sponsored links. Because Google's rankings are determined by click-through rates, those using GBuy may wind up paying more to sponsor links in the future.
Third-party sites offering GBuy will be designated as a "trusted GBuy merchant." When consumers decide to make a purchase using the system, they will leave the particular merchant's site to complete the buy, reports Forbes.com.
According to RBC's Rohan, consumers may feel more secure knowing merchants are using a Google system and in turn complete purchases where shopping carts may have previously been abandoned.
The company with the most to lose from GBuy is eBay.
"Short term, GBuy is more negative for eBay than it is positive for Google," according to Mr. Rohan. "Longer-term, it could be a game-changer."
Google expects to launch GBuy on June 28.
Moderator's Comment: What impact will Google's GBuy system have on the online payment market? Is there a real opportunity for another system to give PayPal a run for its money? - George Anderson - Moderator