Google Inc. said Wednesday that it would offer merchants free online payment services until Dec. 31, ratcheting up competition with EBay Inc.
Businesses using Google Checkout will receive free processing for all sales, the Mountain View, Calif.-based company said. PayPal, EBay's online payment services division, said this week that it would offer as much as $100 million in holiday rebates and free shipping.
Google Chief Executive Eric Schmidt plans to use Checkout, a service released in June that lets users buy items from multiple stores using a single account, to generate commissions and encourage more merchants to buy ads.
The PayPal payment unit was EBay's fastest-growing business in the third quarter. PayPal's revenue climbed 41% to $350 million, outpacing a gain of 22% in auction revenue to $1.02 billion.