Assuming chatter about Google’s plan to launch a PayPay-like payment service is correct, it is seismic stuff. It will transform the payment business, making eBay a near-term short. After all, PayPal represents something like 25% of eBay’s revenue, and at least as high a proportion of profits.
If Google is successful in creating a wider payment system, one that boxes PayPal out with Google’s broader footprint, then eBay will find the ground shifting underneath it in a big way. Not only that, there continues to be buzz that Gooogle will launch a classifieds service, putting eBay and Google at each other’s respective throats in more markets than payments.