More Google Wallet Information

gerry · Live wire! Joined: 15 May 2004 Location: Not idaho

Hey Folks, since we've been discussing Google taking payments for porn related transactions, I thought this article I stumbled across might be of interest to you.

Is Google targeting eBay and PayPal? That is exactly what people thought when news of Google's payment service was leaked. In today's WebProNews, we feature a couple of stories that take a look at the possible uses and implications for Google's upcoming e-wallet.

Editor's Note: I'm sure you've heard of the upcoming Google Wallet by now. What are some uses you can see it going toward? Do you think Google will take Sugar's advice and embrace the adult industry? Discuss at WebProWorld.

In an open letter to Google written by Sam Sugar, and appearing on his SugarBank blog, suggests the Google Wallet would be a perfect tool for adult-related Internet purchases. He provides a number of sound reasons why this would be a good move for Google, financially and otherwise.

[Different Uses For The Upcoming Google Wallet] When it was first revealed, many thought the Google Wallet would be a direct challenge to eBay's PayPal service, this line of thinking was categorically denied by Google CEO. Yesterday, Charlene Li discussed how G-Money could be used to consolidate micropayments (read about Charlene's thoughts in the second article), which constitutes a viable option for the Google Wallet, especially when you consider Charlene's detailed scenario.

A second, more risqué use can be found in Sam's open letter to Google, which asked the search engine to consider embracing adult content-related purchase transactions. The rest of this article looks at Sam's suggestion:

Because eBay does not allow PayPal to be used for pornographic transactions, adult-related web businesses are forced to use expensive merchant services that can leave many, buyers and sellers alike, unsatisfied. For instance, many merchant companies are unequipped to handle these "high risk" transactions. They can also carry expensive merchant charges.

Because of these difficulties, Brad feels Google's payment program would be perfect for the Internet adult industry.

Sugar's rationale comes from the support he feels Google already provides adult businesses. According to the letter:

Google is porn friendly. You provide tools to allow people to view adult images in their search results, there appear to be no restrictions on the type of products that can be found via Froogle, and a great number of the blogs you host (at blogger.com) contain adult material.

Resell On-Demand Open Source Solutions - Click Here.

This is quite true. Google users are responsible for filtering adult-related content out of the query results. Of course, Google does not allow adult content on AdWords campaigns, nor do they allow adult sites to display AdSense ads, but this seems to be out of respect for their big-name advertisers who don't want to be associated with such content.

Sugar's open letter also contains a number of conclusions demonstrating why embracing the adult industry with their new payment system would benefit Google financially and otherwise:

Conclusion: Google is already in the porn business and it would be damaging to withdraw.

Conclusion: PayPal have banned �€˜high-risk' transactions due to a lack of technical expertise. Google can satisfy a waiting billion dollar market by catering to adult transactions.

Conclusion: Though handling adult transactions is complicated, publishing adult material - which Google already does in it's cache and via blogger.com - is more so.

Conclusion: Taking adult transactions will give Google the �€˜adult edge' that VHS used to overtake Betamax. PayPal's neglect is Google's opportunity.

Conclusion: Adult transactions are already being managed profitably and efficiently by a number of small companies. Google has the resources and the brainpower to handle adult transactions safely if it chooses to.

While it remains to be seen whether or not Google will heed Sugar's advice, the fact remains he does provide legitimate and sound reasoning to his suggestion. Monetarily speaking, if Google was to embrace the adult industry with its Google Wallet, the financial rewards would probably be quite extensive.

When you consider both Charlene's and Sam's approach, however different they are, you see that they are opportunities where Google can put their upcoming payment system to effective use. While one of these approaches may seem controversial, it would be quite a financial windfall, especially when you consider the amount of revenue generated by adult-related businesses.

The question remains nonetheless: would Google risk taking such a PR beating by embracing the pornography industry in order to pad their coffers some more?

About the Author:
Chris Richardson is a search engine writer for WebProNews. Visit WebProNews for the latest search news.

larry · Live wire! Joined: 11 May 2005

I don't think it's so much that Google is targeting ebay and PayPal, they are just smart enough to realize that there is more than enough room for another payment processor out there, and why not offer what the other leading places sometimes don't.....adult abilities. I think it's a smart move on the part of Google. If they end up putting a crimp in the style of PayPal then maybe they will reconsider their stance on the issue. However, by then I think it might be too late because I have a feeling Google is going to be a payment site that once you hook up with, you'll stay faithful to.

mike · Live wire! Joined: 12 Nov 2004

Too bad we can't find a petition to sign, sending our signatures to Google in support of them accepting adult payments.

I just don't understand why there is so much of a dilemma when doing those types of transaction, is it the charge backs or what?

nick · Live wire! Joined: 20 May 2003 Location: At home

I agree with Mike.

I don't understand the reasons why others don't accept adult payments, but I really hope Google does.

A lot of people I know sneak payments through PayPal, but that can be costly if caught.

We need a place like Google to stand behind the adult industry.

gerry · Live wire! Joined: 15 May 2004 Location: Not idaho

You're right, it can be costly if PayPal catches you doing adult transactions. Any money that you have in your account I think you can pretty much kiss goodbye.

I'll keep an eye out for more information on the Google situation, I personally can't wait until they are up and running!

larry · Live wire! Joined: 11 May 2005

I'm not 100% on this, but I THINK Paypal doesn't actually keep your money, they just hold it for like 6 months or something and then it's finally sent to you.

They probably sock it into an interest bearing account so they can make some $ off of it before returning it.

Paypal is an easy way to do the funds, receiving and sending, couldn't get much easier, but I have a feeling the simplicity is going to be there for Google as well.

mike · Live wire! Joined: 12 Nov 2004

I think you're right Larry, it's about 6 months and then you're reimbursed.

I agree with the fact that they probably make money off of our money.

Luckily I don't have any problems, but I've not done adult transactions through them either.

It's just not fair to the adult industry in my opinion.

gerry · Live wire! Joined: 15 May 2004 Location: Not idaho

Well, it would be a nice little windfall to get back in 6 months, but a real trauma to lose it in the first place. I wonder if PayPal does spot checks or if they go by "snitches" that let them know about the transactions. How do they keep up on that stuff to know what is allowed and what's not?

larry · Live wire! Joined: 11 May 2005

I think sometimes they know by the messages.

Not sure if you've ever noticed but when you make a payment through paypal there is a place for comments, and sometimes people will put on there what the payment is for.

So, if it's adult related comments then a red flag is raised, tips off Paypal and then freezes their account.

mike · Live wire! Joined: 12 Nov 2004

You're right about the comments field and there is another thing as well. A person that I know runs a phone sex site and she has also written a book about being a PSO. (Phone Sex Operator) She was receiving payments for her book through Pay Pal but not leaving any comments - and telling her clients not to leave comments. But, then a woman that she was in competition with as far as a PSO site got jealous over a client that left her board and went to my friends site, well, she started snooping around, found out about Pay pal being her choice of payment processors and she sent them (Pay Pal) an email letting them know that she was accepting payments this way. So I guess it took a few days to get check it out, but when they confirmed it, her account was frozen, which really put her into a crunch financially. A lot of people just withdrawl like once a month, which means that there may be a nice little stock pile of funds in there, and when you lose that, then that means some bills won't be paid for that month. It's a shame really.

larry · Live wire! Joined: 11 May 2005

One thing about it, when Google starts their payment place and they accept adult, no one will have to worry about freezing accounts.

Let's hope they don't start out accepting everything and then change the way they do things after awhile, like Paypal did.

We just need more people supporting the adult industry!

mike · Live wire! Joined: 12 Nov 2004

Hey everyone, has anyone heard any more about when Google is going to start their payment processor program? I'm really interested in joining up, but I haven't heard anything about it.

larry · Live wire! Joined: 11 May 2005

I haven't heard anything either Larry and I'd like to know as well. You can't get much information from the index page of their website.

Anyone have an idea of who we can contact about it? I'm sure we're not the only two people that want to join up as soon as it's ready.