As you know, Google Checkout is a payment system for Internet search giant launched back in 2006 . Its purpose was to oust PayPal as a payment method online. Never had much success, and remains well below PayPal despite being the method of payment at the Android Market.
Moreover, the fact that they use Google Checkout to discourages many users purchase applications, as this payment system only accepts credit / debit cards, has geographical restrictions, not to store balance. So, Google might be negotiating to use PayPal as a payment method in the Android Market.
Why Google would integrate the system of competition in its App Store? Very simple. PayPal has a large user base, and pay with it’s quick and easy. If we make the process easier for users to purchase an application, users will buy more. This would benefit Google in two ways. The first, of each sale at the Market, Google takes 30%. More Market purchases mean more money for Google.
The second is that if you increase the number of shopping at the Market, the more compelling platform for developers, thus increasing the number of applications. In short, Google does not lose as much as wins if you include PayPal as a payment method.
At the moment, neither Google nor PayPal have made any comment on this, so it is not certain that negotiations end up well. But in doing so, the Android Market would be a far more serious competitor to Apple’s App Store, where shopping is quite easier.
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