Google Checkout Not Pleasing the Masses

Dennis Faas's picture

When investment firm J.P. Morgan Securities conducted a survey of online shopping habits, they found that Google Checkout has already snatched 6% of the market share despite only being open for eight months.

Despite initial results, Google should not be celebrating. The survey also found that Google Checkout significantly lags PayPal in terms of customer satisfaction, a hindrance that could likely cripple the company's market share. (Source:

Google's quick market penetration is attributed to the company's offering of discounts and rebates. Unfortunately, Google has failed in gaining these customers' approval of the service.

In terms of customer satisfaction, J.P. Morgan found that only 19% of Google Checkout's customers rated the service as either "good" or "very good." In contrast, 45% of PayPal customers scored their service in these top two categories. (Source:

Benjamin Ling, lead of Google Checkout, found the figures very surprising because they differ from internal records, which state that less than 1% of transactions experience a problem. However, he noted that "Google remains fully committed to Checkout and to continually enhancing it." (Source:

Google Checkout's discussion forum reveals hints of user frustration. Users reported error messages during the checkout process, confusion regarding the payment system, problems with the interface, and trouble logging in with Internet Explorer. (Source:

One user wrote: "What kind of buyer protection does Google have? To me, they have shown absolutely none... I have been sure to tell as many of my friends/family about my experience. I'm so frustrated... So Buyers Beware... big time!" (Source:

J.P. Morgan's report states blatantly that "[Checkout's] lower brand awareness coupled with its low satisfaction rate leave much room for improvement. As such, we do not believe Google Checkout presents a threat to PayPal at this time." If customer complaints and the report are true, Google Checkout may be in hot water.

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