As well as Paypal have done, its becoming clear that they are vulnerable. They have only accumulated $2Bn in customer deposits which given their marketspace is pitifully small.

Geek News Central Revealing Technical News and useful links

The folks over at Paypal are concerned of course but you would think the product would have evolved over the past couple of years instead of stagnating with not real enhancements to the service.

The rumours of a Google wallet and payment service have been circulating for well over a year, and now seem to have basis in fact, based on the WSJ article.

But the reaction from Jordan (Paypal) about Schmidt’s remarks is quite perplexing.  As Nathan Wienberg reported:

According to rumors I’ve heard, although not printed in the Journal, Jordan knew Schmidt was being dishonest due to two factors: (a) Schmidt was speaking on behalf of Google, and (b) His lips were moving.

This came after Schmidt denied the new Google service would “not compete with ebay (owner of Paypal)”.  This is a defensive reaction, and I have to think now, that being owned by ebay is perhaps good for ebay, but bad for the prospects of an industry changing payment service.

PS .. doesn’t augur well for Skype either.