Yesterday, PayPal started allowing the use of Nochex payment system in th UK again after it banned it last Friday and after an open letter from Martin Greenbank, CEO of Nochex, questioned whether the EU Competition Commission should start investigating the matter.
There were no announcements when PayPal decided to ban the payment system and none when it decided to allow it back in, confusing its traders in both cases and leaving them scrambling to update their listings last Friday or face a lifetime ban, as is eBay's policy. Yesterday's quiet re-entry, again unannounced, left sellers confused and in need of updating their pages yet again.
In both cases, PayPal hadn't communicated with Nochex either to explain its decision. Nochex is a long-establish, Leeds-based operator.
As a major contributor to eBay's (EBAY) revenue, it might be understandable why eBay tries to force PayPal as a payment system. However, going head-to-head with other companies may not be the right way to go about securing PayPal business, especially not when Google Inc (GOOG) has options in its arsenal to hurt eBay where it matters - referrals.
PayPal should probably concentrate on improving their product vis-a-vis the competition rather than using (stooping to) such tactics. Not only can these tactics backfire, but they also don't give investors confidence in eBay and PayPal's ability to deal with competition.
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Reader Comments (Page 1 of 1)
7-14-2006 @ 10:40PM
Adam said...
You seem to focus on the fact that eBay excludes Google Checkout from its site, but no mention of the fact that Google does not accept PayPal as part of it's Checkout. A bit unfair, don't you think?
7-15-2006 @ 10:02AM
Ann Lambert said...
Thank you Adam, I reminded readers Mr Jordan departure from his post should be commended for his family values,(see Ebay filed with SEC Form8-k 7.13.06) he will remain a adviser to the company after his tenure at PayPal.
http://biz.yahoo.com/e/060713/ebay8-k.html
7-15-2006 @ 10:19AM
Ann Lambert said...
Google will one day soon come to a stop of this hype by our media goo.goo.. I support the fact of it super search tech. that is their core enterprise.Most consumer WIIL not jump on to their platform on personal information ie, how often do anyone change a bank account.?
7-15-2006 @ 10:21AM
Ann Lambert said...
Thank you Adam, I reminded readers Mr Jordan departure from his post should be commended for his family values,(see Ebay filed with SEC Form8-k 7.13.06) he will remain a adviser to the company after his tenure at PayPal.
http://biz.yahoo.com/e/060713/ebay8-k.html
7-16-2006 @ 8:48AM
RisingSunofNihon said...
I am not on the Google Checkout bandwagon at all. I personally won't switch over from PayPal unless there are several compelling reasons to do so. Just because this service comes from Google isn't enough of a reason for me.
7-17-2006 @ 1:00PM
Lucas Templeton said...
nor me.
7-17-2006 @ 2:26PM
Steven Ruiz said...
Doesnt anyone see that eBay is literally forcing sellers to use ONLY PAYPAL. Otherwise you have fraudelent bidders (scam accounts) buy your auctions. The only way to circumvent a fraudelent buyer is to use the PAY IMMEDIATE option. This option though, forces you to use PAYPAL as the only means to pay. This is monopolizing the system. Someone should do the American thing...and sue them.
7-18-2006 @ 7:22AM
Selling said...
This is such a good sign - NoChex is an excellent payment processor.
7-22-2006 @ 3:30AM
Kris Taylor said...
Boy is Google ever sly. I went onto Google News to search for current news about Paypal as I read some info about a class action lawsuit in their help, guess what I find? A story about Google Checkout and Ebay.
I looked through it's features, it may be just great for people who are selling and shipping products but for me Ebay has such a phenomenal invoicing tool nothing would make me switch except one upping that. (I dont ship product).
I looked on their support forums and a bunch of people were asking but nobody was answering if they even had an invoicing tool.
8-11-2006 @ 3:27AM
alex kenworthy said...
We used Nochex recently and were ripped off. We strongly suggest you do not use it. Its not Nochex that rips you off - its just that they allow any scum to have an account with them and disclaim all responsibility.