Google taking PayPal on its Play store because it has to

Summary:In Google's ideal world it would be such a payments player that it wouldn't need to add PayPal as an option. Oh well. PayPal is dominating mobile wallets and Google Play needs it as a payment option.

Google Play: Accepting PayPal because it has to.

Google said it would start taking PayPal for Google Play purchases in 12 countries and the move likely made management squirm a bit.

eBay's PayPal and Google are competing---along with Apple, carriers, Visa and Mastercard---to be your mobile wallet. If Google Wallet were this massive juggernaut there wouldn't be a need to take PayPal.

If all went perfectly for Google, its Wallet would have enough mass at merchants and consumers to usurp PayPal. According to comScore though, PayPal dominates mobile awareness and usage on the digital wallet front.

Oh well.

In a blog post, Google said that PayPal will be accepted in 12 countries such as the U.S., Canada and Germany. PayPal, which is increasingly an option at e-commerce checkouts, will also be integrated into Google Play.

For good measure, Google is adding carrier billing to Play. For the search giant, PayPal and carrier billing give it more potential for "frictionless commerce" on the international stage in areas like Thailand and Taiwan. Two thirds of Play purchase occur outside of the U.S.

Also:  Mobile payments need carrots to boost adoption, says Accenture

Topics: E-Commerce, Google, Developer


Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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