A review of Google Checkout

In late June Google launched its payment processing service, Google Checkout, which is currently only available to US merchants and customers. We’ve reviewed its main features and issues in anticipation for a UK launch.

Benefits for Merchants & AdWords Advertisers: Google cites Checkout’s main benefit as streamlining the order process for users with an account, providing a simple login and a single page to place an order – hiding credit card and email details from the merchant. It is also hoped that Checkout will provide a simple online wallet for use across a range of stores and Google has already got a range of high profile merchants on board to promote this. Both these features should help to improve Checkout merchants’ visits to sale rate.

For merchants there is an API available to integrate Checkout with their shopping cart systems, and it is supported by a range of commercial e-commerce packages. Simple ‘buy it now’ buttons are also available for websites selling single items which do not require a cart.

For AdWords advertisers, free payment processing of sums up to 10 times their advertising spend is available. A small image on Checkout merchants’ AdWords is also provided, which may improve clickthrough rates once users get more familiar with this service. As clickthrough rate is used in the AdWords ranking system it could also give an advantage to Checkout merchants over competitors, including UK advertisers for whom the service is not yet available.

Difficulties so far: In the month since Checkout’s launch, it has received praise from merchants, although there have also been some problems highlighted, including difficulties in editing orders after they are placed, plus it is not yet possible to integrate conversion tracking code for AdWords or other systems.

Competition with PayPal: eBay’s market leading PayPal offers a wider range of features – such as payments between individuals – however Google Checkout clearly means to compete, offering a lower 2% transaction fee, compared to PayPal’s 2% – 3.5% range. In response, eBay has now banned Checkout as a payment method for eBay merchants, citing a lack of a “substantial historical track record of providing safe and reliable financial and/or banking related services”!.

If you would like to find out more about Google Checkout and payment processing, or how we can review your website’s usability to improve conversion rates, contact us now for more information.

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