Google Wallet taking on PayPal

I am a regular user of PayPal and really have no other alternative for sending and recieving cash online...BUT PayPal commision fees can be a big drag 3 - 4 percent per transaction! They need a rival to really beat down price - ENTER GOOGLE...read on

NEW YORK, June 17 (Reuters) - Google Inc. (GOOG.O: Quote, Profile, Research) this year plans to offer an electronic-payment service that could help the Internet-search company diversify its revenue and may heighten competition with eBay Inc.'s (EBAY.O: Quote, Profile, Research) PayPal unit, the Wall Street Journal reported on Friday.

Exact details of the search company's planned service are not known, the report said, but quoted people familiar with the matter as saying it could have similarities with PayPal, which allows consumers to pay for purchases on Web sites by funding electronic-payment accounts from their credit cards or checking accounts.

A Google spokesperson contacted by Reuters declined comment.

For Google, based in Mountain View, Calif., a payment service could represent a significant expansion beyond online advertising, which generated 99 percent of its $3.2 billion in revenue last year, the Journal said. Online-payment providers typically take a commission on each transaction.

Depending on the exact details, Google's move could potentially threaten eBay's successful PayPal service, which generated $233.1 million, or 23 percent of eBay's revenue in the first quarter, the newspaper reported.

Rumors about a new Google payment service escalated following a panel discussion at a Piper Jaffray Internet conference on Thursday, the newspaper said.

At the conference, Scot Wingo, chief executive of ChannelAdvisor, a Morrisville, N.C. e-commerce consulting firm, said he believed the payment service would be launched soon, according to the newspaper.

In an interview, Wingo said he based his statement on questions from retailers with which his company works, according to the Journal.

Wingo said the retailers have asked him whether ChannelAdvisor would support the service, which some believe goes by the code name Google Wallet.

Wall Street Journal Report Reuters Report

Buying a home abroad

Millions of Britons dream of owning an overseas property. But just how do you raise the money and what are the pitfalls along the way? Our guide to buying your foreign home answers your questions.

Finding a home

Many people spot something while they are on holiday. Otherwise, several magazines list foreign properties for sale, including Homes Overseas, Foreign Property News and Exchange & Mart. The internet is probably the best search tool at your disposal.

Raising the money

If you can buy with cash, do it. You will own the property outright without increasing your mortgage debt. This will mean fewer bills on your new property. If you don't have the cash, there are two ways to pay for a foreign home. You can extend your main mortgage, or you can get a new mortgage for the property. Extending your mortgage is presently a cheap way of raising cash, but you may not be able to get a remortgage for more than 75% of the second property's price. Remember, you risk losing both homes if you cannot keep up payments.

The other option is to take out a second mortgage on your holiday home. Several companies offer mortgages overseas, including Halifax, Abbey, which runs an overseas property service, Norwich & Peterborough building society and Barclays, which specialises in the French market.

You could also consider a mortgage in the local currency, but you need to be aware of all the risks. Taking out a foreign currency mortgage could be dangerous. The pound can move against the euro - if it weakens, your payments will increase. Properties generally have continued to rise in price this year (2004) as the pound has weakened against the euro. On the other hand if you are buying property in another country your home will be valued in that currency so it could make more sense to take out a mortgage in that currency. Abbey and Barclays both offer euro mortgages but the drawback is that you have to be paid in euros to be eligible.

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