Is Google deliberately pricing itself out of payment processing?

I was one of many who were shocked yesterday when Google announced the changes in Checkout processing fees. They’ve also announced that AdWords spend will no londer fund free processing of transactions.

In fact, it turns out the new fees are almost identical to PayPal’s fees.

Plenty of sellers have been complaining about the move but is it a deliberate attempt by Google to get rid of them?

The previous fees were very, very low and along with the free processing offer based on AdWords spend, Google Checkout was a very attractive alternative to the well-established PayPal.

Could this all have been a ruse to get testers for Checkout, though? It’s possible that Google was simply entering in at such a low price to deliberately get thousands of e-commerce sites on board to test the waters.

Now they’ve decided they don’t want to be in the market afterall they’re deliberately matching PayPal’s prices knowing that PayPal is a better service. It becomes a no-brainer for Checkout customers to switch to PayPal or another service.

So, nonsensical pricing structure, or deliberate exit strategy?

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