Eric Schmidt confirms news of Google’s Online Payment System

eBay might be feeling a bit better after hearing the comments from the Google Chief Executive Eric Schmidt who clarified the rumors circulating in the market since the last couple of days. He confirmed the news about Google developing an Online Payment System but denied reports that it is aimed at PayPal services from eBay.

Eric clarified that their system would not be offering “person-to-person stored-value payments system” (like PayPal does) but instead be an evolution of their existing services. Schmidt told Reuters News Agency: “The payment services we are working on are a natural evolution of Google’s existing online products and advertising programs, which today connect millions of consumers and advertisers. We believe that e-commerce can be improved and we are working on ways to improve the user experience.”

However, he did not give out details about how it would differ from the PayPal’s mechanism, which has drawn criticism from the users for lack of decent support and high charges. eBay earns around 25% of their revenues from the PayPal online payment system and they would be vastly affected by entry of a giant like Google in this market. We would have to wait for the service to launch to check how it different from the PayPal service…