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Google Base = Google Banking?

kidmercury | 15 March, 2006 10:52

Barry Schwartz at SEW Blog informs us that you can now accept payments without a merchant account through Google Base.

So I guess this means Google CEO Eric Schmidt was lying when he said Google Wallet wouldn't compete with Paypal. Google Base is looking more like a Paypal threat by the minute.

This also suggests Google could be positioning itself as a banking company, which I think is a great move, provided the company does not run into the innovator's dilemma (not having the resources, business processes, or internal incentive system to execute the desired innovation). With its enormous user base, it can do wonders to diversify financial risk, and could easily blow away P2P lending companies like Prosper and Zopa. On the B2B side, it could revolutionize how firms raise capital, which would be a huge advantage in terms of positioning itself as the platform on which all web businesses must be built. If this is Google's strategy, it could be a great rival to Microsoft's strategy for building the platform upon which all Internet businesses are founded, which is largely about providing the tools that Internet businesses need (advertising, CRM, web development, etc.).

With Google moving as fast as it is in terms of both internal development and external acquisitions, it seems likely that the acquisition and/or development of a CRM application would be a great move.


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