Google and PayPal renew rivalry with competing holiday promotions
Google and PayPal have launched promotions aimed at convincing online holiday shoppers to use their payment options, renewing a rivalry that began last fall.
Google announced yesterday that registered U.S. residents who pay with its Google Checkout service will receive two frequent flyer miles for each dollar spent through Dec. 31. Participating airlines are Alaska Airlines, Continental Airlines, Delta Airlines, Midwest Airlines, Northwest Airlines, US Airways and United Airlines.
Google also says that more than 100 online retailers are offering discounts of $5 to $50 on purchases made with Google Checkout. Among the merchants offering $10 off were Drugstore.com, which is No. 35 in the Internet Retailer Top 500 Guide, Buy.com, No. 38, CompUSA, No. 42, DVD Empire, No. 215, and Aéropostale, No. 423. Among those offering $50 off on larger orders were TheFurniture.com and Gem Stone King.
Merchants are funding the offers. Google paid for similar discount offers during the 2006 holiday season, spending more than $58 million to help introduce Google Checkout, which was launched in June 2006.
PayPal, a payment service owned by eBay Inc., says it is funding its promotions, including a 20% cash back offer beginning today on PayPal purchases at more than 15 merchants. Those merchants include Dell, which is No. 4 in the Internet Retailer Top 500 Guide, Newegg, No. 10, Overstock.com, No. 25, Barnes & Noble, No. 33, Toys “R” Us, No. 39, and Blue Nile, No. 49.
PayPal is also offering free shipping and discounts at select online merchants. And consumers who pay online with PayPal from Nov. 19 through Dec. 21 are entered into a sweepstakes that features prizes worth more than $100,000.
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