Paypal vs. Google Checkout in the UK ~ Encyclopedia - Online Marketing With Google Yahoo MSN

Friday, December 21, 2007

Paypal vs. Google Checkout in the UK

Google Checkout and Paypal - are both well enough established that we can compare their success in the UK. As the chart below illustrates, Paypal was in the lead for the first couple of months of the holiday shopping season, but Google Checkout overtook it two weeks ago and has maintained a marginal lead since.

Although the two sites are competitors, they have quite different sources of traffic. As you would expect, the majority (59.1%) of Paypal’s traffic comes from its parent, eBay (combined UK and US sites), with another 12.4% from Google (UK and US sites again). A further 11.7% comes from a combination of email providers, social networks and banks; but just 2.2% comes from non-auction Shopping and Classified sites. This compares with 45.3% for Google Checkout, which helps explain the large number of retailers in the table below llustrating the top 20 upstream sites visited before Google Checkout last week.

Most of these are smaller independent retailers, although two larger retailers (Vodafone and Dabs) also appear. Dabs accepts payment via both Google Checkout and Paypal, but currently sends 16 times as much traffic to former than the latter. However, visits do not always mean purchases. When Heather Hopkins posted on this topic earlier in the year, there was some discussion in the comments section about what people did once they got to the shopping cart.

While I can’t provide abandonment data, it is likely that people visiting another retail site after either Paypal or Google Checkout may have not completed their purchase. In other words, a lot of downstream traffic to our Shopping and Classifieds category could be used as a proxy for abandonment rates. As the graph below illustrates, more people currently visit another Shopping and Classifieds site after Google Checkout than after Paypal, and that the gap is widening.


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