When a beta of Google Base was unveiled last fall, we observed that Google also had a payment service in the works. Once Google took the wraps off of the Google Video Store, we saw how that payment service worked: using your Google Account, you would be able to save your credit card information so you could easily purchase NBA broadcasts, TV shows, and other content available from the video store.

In a recent update on Google’s payment plans, the search giant said that one of its aims with Google Accounts was to make it possible for its users to pay for items online. Google appears ready to take the that step, allowing users to buy and sell on Google Base by using their Google Accounts. A handful of sellers on Google Base will be able to accept payments for items listed on Google Base. According to the Google Base blog, the company plans to start small and gradually increase the number of users and listings available for purchase via a Google Account.

This is good news for those who love Google and don’t mind contributing towards the company’s goal of indexing everything there is to be indexed. But for a company like eBay—which owns PayPal and 25 percent of Craigslist—this is very bad news indeed. For all of its success—eBay has crushed nearly all the competition in both the online auction and consumer-to-consumer (C2C) payments space—it could be vulnerable if another company with the financial wherewithal and infrastructure to challenge its business model came along.

Posted: 02|27|06 at 10:08 am. Filed under: Auction News.